Bishop 4.2 - Managing Trade-offs during risk analysis

Question 1

Who determines what is reasonably practical trade off?

Answer 1

The Risk Owner will make the trade-off recommendation on behalf of:
o The Project Owner (an individual or a corporation), if it is a “private”
project.
o The delegated “Project Owner”, if it is a public or community-owned
project.
o In all cases the Risk Owner will consult with selected stakeholders in
the project to ensure that there is general support for the proposed
trade-off.
o These stakeholders may include a Regulator (such as for an
environmental risk); a finance company and/or insurer for a
commercial trade-off.

Question 2

What are tolerable risks?

Answer 2

Risks that society is willing to live with so as to secure certain benefits;
* Risks that society does not regard as negligible (broadly acceptable) or
something it might ignore;
* Risks that society is confident are being properly managed by the owner;
and
* Risks that the owner keeps under review and reduces still further if and as
practicable