ABSTRACT
This chapter explains how to deal with risk. Risks with higher ranks should be mitigated or avoided first. A lot of people believe that the best strategy is to completely eliminate risk. However, completing eliminating risk can be extremely expensive and can cause other risks. A few years ago, the government asked experts in decision analysis to conduct research on whether we should install special defensive equipment on commercial aircraft to protect against surface-to-air missile attacks by terrorists. Risk engineering is a continuous process of balancing risk response strategies for different risks in the project or program. Risk engineering involves accepting, mitigating, avoiding, and transferring certain risks in such a way that the final project is cost-effective and less risky at the same time. Zero-risk bias is common when people make decisions about health, safety, and environment. This bias often manifests itself in managing hazardous waste, using nuclear energy, and rules and regulations regarding public safety.
