managing risk: it’s not rocket science

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Risk Compensation and the management of road safety 22 February 2005 Institute of Transport and logistics University of Sydney [email protected]

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Risk Compensation and the management of road safety 22 February 2005 Institute of Transport and logistics University of Sydney [email protected]. Managing risk: it’s not rocket science. it’s more complicated. Three kinds of Risk. e.g. cholera: need a microscope to see it and a - PowerPoint PPT Presentation

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Page 1: Managing risk:  it’s not rocket science

Risk Compensationand the management of road safety

22 February 2005Institute of Transport and logistics

University of Sydney

[email protected]

Page 2: Managing risk:  it’s not rocket science

Managing risk: it’s not rocket science

it’s more complicated

Page 3: Managing risk:  it’s not rocket science

Three kinds of Risk

Perceivedthroughscience

Perceiveddirectly

Virtualrisk

Perceivedthroughscience

Perceiveddirectly

Virtualrisk

Perceivedthroughscience

Perceiveddirectly

Virtualrisk

e.g. climbing a tree, riding a bike, driving, car

e.g. cholera: needa microscope tosee it and a scientific training tounderstand

Scientists don’t know or cannotagree: e.g. BSE/vCJD, global

warming, low-level radiation, pesticide residues, HRT, mobile phones,passive smoking,stock market ….

Page 4: Managing risk:  it’s not rocket science

A successful risk manager

Risk management is

• a balancing act

• instinctive

• intuitive

• modified by culture

Page 5: Managing risk:  it’s not rocket science

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

Page 6: Managing risk:  it’s not rocket science

less efficent brakes

tyres - lessgrip

reduced downpressure - less grip

more dangerous & therefore slower

Risk compensation

Page 7: Managing risk:  it’s not rocket science
Page 8: Managing risk:  it’s not rocket science
Page 9: Managing risk:  it’s not rocket science
Page 10: Managing risk:  it’s not rocket science
Page 11: Managing risk:  it’s not rocket science
Page 13: Managing risk:  it’s not rocket science
Page 14: Managing risk:  it’s not rocket science

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

The risk thermostat

Money, power,love, glory, food,

sex, rushes of adrenaline, control ...

Money, health,life, status, self-esteem,

embarrassment, jail, loss of control ...

Page 15: Managing risk:  it’s not rocket science

Risk perceived through science

• “a Richter scale for risk would involve taking a series of common situations of varying risk to which people can relate” (DTI)

• “a simple measure of risk to that people can use as a basis for decision making” (RSS)

Page 16: Managing risk:  it’s not rocket science

Table 1. Risk of an individual dying (D) in any one year or developing an adverseresponse (A)Term used Risk estimate ExampleHigh Greater than 1:100 A. Transmission to susceptible household contacts

of measles and chickenpoxA. Transmission of HIV from Mother to child

(Europe)A. Gastro-intestinal effects of antibiotics

1:1 - 1:2

1:61:10- 1:20

Moderate Between 1:100-1:1000 D. Smoking 10 cigarettes per dayD. All natural causes, age 40 years

1:2001:850

Low Between 1:1000- 1:10000 D. All kinds of violence and poisoningD. Influenza

1:33001:5000

D. Accident on road 1:8000Very low Between 1:10000- 1:100000 D. Leukaemia

D. Playing soccerD. Accident at homeD. Accident at workD. Homicide

1:120001:25000!:260001:430001:100000

Minimal Between 1:100000- 1:1000000 D. Accident on railwayA. Vaccination-associated polio

1:5000001:1000000

Negligible Less than 1:10000000 D. Hit by lightningD. Release of radiation by nuclear power station

1:100000001:10000000

Source: On the State of the Public Health: the Annual Report of the Chief Medical Officer of theDepartment of Health for the Year 1995, London, HMSO, 1996, p. 13.

Page 17: Managing risk:  it’s not rocket science

A Richter Scale for Risk?

Risk of an individual dying in any one year as a result of a road accident

= 1:8000 (On the State of the Public Health 1995)

= 1:16000 (Road Accidents Great Britain 1995)

Young male vsmiddle-aged female

100 X 134 X

3am Sunday vs10am Sunday

Personality disorder vs normal

10 X 20

2.5 times over limit vs sober

= 2 680 000

Page 18: Managing risk:  it’s not rocket science

• I exaggerate

the four variables are not independent;there are more disturbed drunken young men on the road at 3am Sunday

• or do I?

the four numbers in the equation are all averages.

Further variables must be invoked to account for their variances,

is the carbig X new X equipped with ABS brakes X insured ...?

is the roadslippery X well-lit X straight ... ?

is the driver sleepy X angry X on drugs X short-sighted ...?

is the ... .... ?

Page 19: Managing risk:  it’s not rocket science

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

Bottom loop bias

Reducing Risks - Protecting People

Page 20: Managing risk:  it’s not rocket science

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

Perceptual Filters

Page 21: Managing risk:  it’s not rocket science

Individualist

Fatalist Hierarchist

Egalitarian

Page 22: Managing risk:  it’s not rocket science

Safety

Resources devoted to increasing safety

Directly Perceptible:Victorian coal mine - imposedclimbing Everest - voluntary

Titanic effect

Virtual Risk: human error becomesBad Luck:legal black hole

Bad luck

Perceived through science:legal grey area

Page 23: Managing risk:  it’s not rocket science

www.acm.ab.ca/safety/images/ fault-tree.gif

Page 24: Managing risk:  it’s not rocket science

bad luck

foresight

the present

Page 25: Managing risk:  it’s not rocket science

bad luck

foresight

the present

hindsight

Page 26: Managing risk:  it’s not rocket science

hindsight foresight

the present

Culpable negligence

bad luck

Page 27: Managing risk:  it’s not rocket science

Whom do you trust?

per cent

Egalitatians

Fatalists

Individualist

Hierarchist

Page 28: Managing risk:  it’s not rocket science

More anonymous, less convivial

Page 29: Managing risk:  it’s not rocket science

Less child friendly

Page 30: Managing risk:  it’s not rocket science

More dangerous

Page 31: Managing risk:  it’s not rocket science

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

The lorry driver and the cyclist

Page 32: Managing risk:  it’s not rocket science

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

Perception of risks

Accidents

Propensity totake risks

Balancingbehaviour

Rewards

Lawyer on contingency fee

Insurer

Page 33: Managing risk:  it’s not rocket science

69% of Americans believe in angels. 46% have their own guardian angel.

Page 34: Managing risk:  it’s not rocket science

New Scientist22 January 2005