Open AccessThe societal impact value of risk
Author(s) -
Deborah Simpson
Publication year - 1995
Language(s) - English
Resource type - Reports
DOI - 10.2172/80993
Subject(s) - risk assessment , risk management , value (mathematics) , hazardous waste , business , population , risk analysis (engineering) , environmental health , actuarial science , natural resource economics , public economics , economics , medicine , ecology , biology , computer science , finance , management , machine learning
A key ill-defined issue in the management and regulation of potentially hazardous conditions is that of the value to be associated with a reduction (or existence) of human health risks, such as radiation exposure or hazardous substance ingestion. Empirical observations of societal behavior patterns lead to a relationship for the quantitative value of societal risk impact which is consistent with general societal risk acceptance, is not inconsistent with ``de facto`` risk regulation, and is suitable and appropriate as a specification or guide for risk management and risk regulation. This societal risk impact expression is: Impact ($/year) = (8 {times} 10{sup 7}) NR{sub i}{sup 4/3} where Ri = individual annual mortality risk; N = number of persons in the population sharing the risk and benefits. The change in Impact which can be derived from a regulation or risk management activity is the value of annual benefit which society would expect to forego (or annual equivalent cost to incur) in consideration of the activity