Risk treatment through changes of the system characteristics may be achieved by restricting
the use of the structure (exposure), by strengthening the components of the structure
(vulnerability) and by increasing the redundancy of the structural system (robustness).
ExposureVulnerabilityRobustnessRisk reduction measures
ExposureVulnerabilityRobustnessRisk reduction measures
ExposureVulnerabilityRobustnessRisk reduction measures
ExposureVulnerabilityRobustnessRisk reduction measuresFigure 4.8: Illustration of how risk treatment might be performed at different levels of the system
representation.
Risk transfer
Risk transfer may be considered as one special possibility for risk treatment. A decision
maker who is responsible for the management of risk may optimize his/her decision making
with the purpose to reduce risks and/or maximize benefits as outlined in the foregoing.
However, as emphasized previously the outcome of the decision making is generally
associated with uncertainty. For a decision maker with limited economical capabilities this
uncertainty might be a problem in the sense that losses could result from the decision making
even though this in expected value is optimal. Such losses might be in excess of the
economical capabilities of the decision maker and it is thus a central issue to take budget
constraints into account directly in the decision making. The consequences of such event can
be included into the formulation of the decision problem by using the concept of follow-up
consequences outlined earlier. However, the risks associated with the event of excessive
economical losses may also be managed by transferring this risk to a third party. Such risk
transfers must generally be “bought” and this is typically the concept followed in the
insurance and the re-insurance industry.
Risk communication
Risk communication may just as risk transfer be seen as one special means of treating risks.
Different individuals and different groups of individuals in society perceive risks differently
depending on their own situation in terms of to what degree they may be affected by the
exposures, to what degree they are able to influence the risks and to what degree the risks are
voluntary. Generally risk are perceived more negatively when stake holders feel more
exposed, when they feel they have no influence and they feel they are involuntary.
Another aspect is related to how adverse events are perceived by individuals and groups of
individuals in society when and after such event takes place. Again this depends on the
perspective of the affected individuals and groups of individuals. Furthermore, the occurrence
of adverse events and the way the information about such events is made available will affect
the perception of risks in general but also in many cases trigger actions which have no rational