Integrating Rational and Emotional Risk Management: A Stepwise Approach and Practical Implications
Y. Xu (TU Delft - Technology, Policy and Management)
G.L.L.M.E. Reniers (Universiteit Antwerpen, Katholieke Universiteit Leuven, TU Delft - Technology, Policy and Management)
M. Yang (TU Delft - Technology, Policy and Management)
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Abstract
Decisions in complex systems need support from formal risk management. Traditional risk management, based on a "rational" idea of risk (the actual damage linked with probabilities), often diverges from public perceptions, leading to conflicts between expert-led evaluations and societal acceptance. Two research directions have emerged to bridge this gap: enhancing stakeholder participation in risk management, and incorporating emotional factors into risk assessment. Building on these efforts, we propose a systematic methodology integrating stakeholders' emotional considerations into formal risk management. Our approach combines a refined risk conceptualization with a structured stakeholder engagement process. An illustrative example involving an ammonia plant site-selection risk problem is presented to demonstrate the applicability of the proposed approach. The proposed approach offers a potential way to resolve conflicts and enhance public trust in risk management.
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