RMI-2302 Lecture Notes - Lecture 2: The Twilight Zone, Mental Model
14 Feb 2016
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Rmi 2302 exam 1 study guide. A scientific view of risk much more of a public policy view of risk. Probability of a person suffering an adverse effect from some activity or exposure over a given period of time/involvement. The time element that is involved in measuring risk is frequently overlooked. Example: 1 in 8 women will develop breast cancer : this is out of women who live to 95+, meaning all women who die before the age of 95 are not included in this statistic. It also assumes that a 5 year old dying is the same as a 95 year old dying: using number of days lost says dying young is a bigger loss than dying old. Risk reduction has costs (both monetary and non-monetary) Requires putting a value on human life. Innovation risk the riskiness of an innovation depends on the choices people make. The more informed their choices, the lower the risk will be.
