ABSTRACT
The risk governance framework offers two major innovations to the field of risk: the inclusion of the societal context and a new categorization of risk-related knowledge.
Inclusion of the societal context. Besides the generic elements of risk assessment, risk management and risk communication, the framework gives equal importance to contextual aspects, which are either directly integrated in a model risk process comprising of the above and additional elements or form the basic conditions for making any risk-related decision. Contextual aspects of the first category include the structure and interplay of the different actors dealing with risks, how these actors may differently perceive the risks and what concerns they have regarding their likely consequences. Examples of the second category include the policy-making or regulatory style as well as the socio-political impacts prevalent within the entities and institutions having a role in the risk process, their organizational imperatives and the capacity needed for effective risk governance. Linking the context with risk governance, the framework reflects the important role of risk-benefit evaluation and the need for resolving risk-risk trade-offs.
Categorization of risk-related knowledge. The framework also proposes a categorization of risk which is based on the different states of knowledge about each particular risk, distinguishing between ‘simple’, ‘complex’, ‘uncertain’ and ‘ambiguous’ risk problems. The characterization of a particular risk depends on the degree of difficulty of establishing the cause-effect relationship between a risk agent and its potential consequences, the reliability of this relationship and the degree of controversy with regard to both what a risk actually means for those affected and the values to be applied when judging whether or not something needs to be done about it. Examples of each risk category include, respectively, known health risks such as those related to smoking; the failure risk of interconnected technical systems such as the electricity transmission grid; atrocities such as those resulting from the changed nature and scale of international terrorism; and the long-term effects and ethical acceptability of controversial technologies such as nanotechnologies. For each category, a strategy is then derived for risk assessment and risk management, as well as the level and form of stakeholder participation, supported by proposals for appropriate methods and tools.
