Risk Governance Framework
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1 Risk Governance Framework Marie-Valentine Florin References: Risk Governance Towards an Integrative Approach, White Paper, 2005 An Introduction to the IRGC Risk Governance Framework, International Risk Governance Council
2 IRGC International Risk Governance Council Academic Research Risk gouvernance as a research object Any organisation including SMEs Enterprise risk management ISO (31000) "Academic" Risk gouvernance model Institutions Institutionalisation of risk governance Public policies Risk gouvernances as an analytical process to structure and inform a policy issue Practitioners "Applied" Risk gouvernance framework OECD UNISDR UNECE Etc Risk gouvernance: A problem-solving method to support decision making Risk gouvernance " toolbox" Modularity Illustrations 2
3 IRGC S Risk Governance Framework Deciding Understanding Framing: Context, Issue Boundaries Risk management Risk assessment Decision making Concern assessment Risk evaluation Knowledge characterisation 3
4 Defining the context in which risk governance is organised Core Risk Governance Process Risk assessment Risk evaluation Risk management Communication Organisational Capacity assets skills capabilities Actor Network politicians regulators industry/business NGOs media public at large Political & Culture different regulatory styles Social Climate trust in regulatory institutions perceived authority of science degree of civil society involvement RISK CULTURE 4
5 Characterizing the knowledge we have about the risk, to provide guidance to stakeholder involvement and identify possible risk management strategies Complexity Uncertainty Ambiguity Refers to the difficulty of identifying and quantifying causal links between a multitude of potential causal agent and specific observed effects A state of knowledge in which, although the factors influencing the issues are identified, the likelihood of any adverse effect of the effects themselves cannot be precisely described. Giving rise to several meaningful and legitimate interpretations of accepted risk assessments results Large infrastructure network, e.g. electricity grid, internet E.g. growing biomass for fuel, vs. for food; impact on greenhouse gas emissions Risks related to genetically modified crops 5
6 Involving stakeholders to assess and manage risks Civil society Affected stakeholders Affected stakeholders Actors External Scientists/ Researchers External Scientists/ Researchers External Scientists/ Researchers Type of participation Use existing routines to assess risks and possible reduction measures Maximise the scientific knowledge of the risk and mitigation options Involve all affected stakeholders to collectively decide best way forward Societal debate about the risk and its underlying implications Dominant risk characteristic Simple Complexity Uncertainty Ambiguity As the dominant characteristic changes, so also will the type of stakeholder involvement need to change 6
7 (adapted from: IRGC risk governance framework, 2005) Risk Management Strategies Target Impact of the risk - exposure - vulnerability Strategies directed at the risk absorbing system Discoursebased Routinebased / regulate / build stronger Robustnessfocused Resiliencefocused / prepare to cope with surprises / build tolerance and resolve conflicts Source of the risk - hazard Agent-based strategies Risk-informed / seek more information Precautionbased / be prudent / do not make irreversible decisions Simplicity Complexity Uncertainty Ambiguity Characteristic of the risk 7
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