RIA And Effective Decision-Making

Abstract

In this research we try to discover the insight of “Risk Assessment” in a holistic perspective. The key heart of the study is on “Risk Assessment” and its relation with “Decision Making”. The research also examines various characteristics of “RIA and Risk Assessment” and tries to measure its effect. Lastly the research illustrates a variety of factors which are responsible for “RIA and Risk Assessment” and tries to describe the overall effect of it.

Table of Contents

Introduction4

Discussion5

Decision making and Cultural Perceptions6

Conclusion6

RIA And Effective Decision-Making

Introduction

Identifying, understanding, and managing risks are an imperative tool in preventing accidents during the course of business operations. Engaging in emergency preparedness and preventing harm to human health and the environment can be significantly informed by undertaking a risk assessment.

Risk assessment is a scientific process that defines, identifies, and analyzes the nature and magnitude of risks, uncertainties of the risk, and its impacts. It can involve either quantitative or qualitative analysis. Risk assessment is used to establish priorities in which the decision maker is able to target the allocation of resources according to the immediacy and acuteness of the threats in order to make unwanted events less likely to happen. In this way, it contributes toward decision making.

A risk is the likelihood of harm from a hazard or any circumstances that may produce an unfavorable outcome to the natural or built environment, including human physical and mental well-being. Risk is the probability that an undesirable event (in a system of discrete outcomes) or output level (in a system of continuous outcomes) that might occur as the consequence of some action or series of actions. Risk analysis/assessment is a planning and decision support process that estimates the risk that an undesirable event—or output level—will occur and then develops and institutionally allocates that risk. A reliable analysis of risk—one that enables a confident decision about the future—requires an understanding of a system's functions and a predictability of its outputs. To the extent that a system's functions are quantitatively uncertain and that its outcomes are qualitatively undesirable, the risk associated with a particular outcome is high. In general, as the complexity of a system's structure and function increases, so does the potential uncertainty of its outcomes; conversely, as one approaches certainty, risk approaches zero.

Discussion

Decision making is the process of recognizing and selecting the best option among different available alternatives on the basis of the values and judgment ...