Author:

Keywords:

Societal acceptability, Industrial risks, Disproportion Factor, Cost-benefit analysis, Safety decision making, Science & Technology, Technology, Engineering, Industrial, Operations Research & Management Science, Engineering, STUDENTS, STRESS, 09 Engineering, 11 Medical and Health Sciences, 17 Psychology and Cognitive Sciences, Human Factors, 40 Engineering, 42 Health sciences, 52 Psychology

Abstract:

© 2015 Elsevier Ltd This paper develops an approach considering parameters related to the societal acceptance of industrial risks, to determine an adjusted Disproportion Factor (DF∗), whereby the pre-existing calculation model of the Disproportion Factor (DF) developed by Goose (2006) is used as the basis. Our approach will allow companies to have a much more realistic perception and coloured picture of decision-making, where societal acceptability is fully integrated into the calculation process. This way, the decision will not only be more accurate, but also be more defensible. After a literature review, 11 indicators were identified as relevant within the framework of prevention of disasters in companies. Factor analysis confirmed that the 11 indicators represent a societal acceptability of risks (SAR) concept. By using a scoring system we explain how an adjusted DF∗ can be determined. An illustrative example is also given to show how the model can actually be used. This study thus provides a scoring system that could be used by risk managers in order to include the societal acceptability of risks (SAR) into economic analyses of industrial risks.