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Updated Principles for Risk Analysis
Title: Updated Principles for Risk Analysis
Date: September 19, 2007
Author: Susan Dudley and Sharon Hays
Institution: Office of Management and Budget and Office of Science and Technology Policy
Bibliographic Entry: Dudley, Susan and Sharon Hays. “Updated Principles for Risk Analysis.” Office of Management and Budget and Office of Science and Technology Policy. Executive Office of the President. September 19, 2007.
Electronic Link: http://www.ostp.gov/html/m07-24.pdf
Key Words: risk analysis, risk assessment, risk management, risk communication, priority setting
Summary of Key Points, Issues, Conclusions:
The OMB and OSTP reviewed a 1995 set of risk analysis principles for executive heads of departments and agencies. Five categories of principles include: (1) general principles, (2) principles for risk assessment, (3) principles for risk management, (4) principles for risk communication, and (5) priority setting.
General Principles
1. As an important risk analysis tool, these principles are intended to be goals for agencies with respect to the assessment, management and communication of environmental, health, and safety risks.
2. All principles are to be applied within the context of existing policies
3. Follow Executive Order 12866 regarding setting priorities.
4. A clear distinction between identification, quantification and characterization or risks and the selection of methods or mechanisms for managing risks should be established.
5. Conduct appropriate cost benefit analysis with nature and significance of decisions.
Principles for Risk Assessment
1. Agencies should employ the best obtainable scientific information.
2. Characterization of risk should be presented with both qualitative and quantitative data.
3. Judgments such as assumptions, defaults and uncertainties in developing risk assessment should be explicitly stated.
4. All appropriate hazards should be included in risk assessment.
5. Engage in peer review of risk assessment.
6. Develop a consistent approach to risk assessment evaluation.
Principles for Risk Management
1. In making management decisions, agencies should examine the risks and benefits and costs associated with the selection and implementation of risk management strategies.
2. Agencies should attempt to offer greatest net improvement.
Principles for Risk Communication
1. Open two-way exchanges between policy makers and experts should occur.
2. Risk management goals should be clearly stated and decisions communicated clearly.
Principles for Priority Setting Using Risk Analysis
1. Agencies should compare risks and group them according to concern levels of high, moderate and low
2. Actions resulting in the greatest net improvement for social welfare should be taken first.
3. Priorities should be set according to agency experts, broad range of public officials and the public, with consensus where possible.
4. Agencies should attempt to coordinate risk reduction.
Name of Researcher: Julie Curry
Institution: Integrative Center for Homeland Security, Texas A&M University
Date Posted: October 29, 2007