Dealing with risk–risk interdependencies and trade-offs in relation to development and use of new technologies

Abstract

The paper deals with the recognized need to systematically explore trade-offs in modern among single risks in modern risk management systems. These risk trade-offs have often been downplayed as ‘side effects’ or ‘unintended consequences’ and, even more often, poorly examined, quantified, and managed. The paper proposes how to deal with the real or possible trade-offs and within a framework which covers also the emerging risks: from early notion and indications up to fully developed and recognized (mature) risks. The trade-offs have been quantified primarily by means of indicators key/safety performance indicators. The framework relies very much on the ideas proposed by IRGC, ISO 31000, Solvency directive and other recognized concepts and takes practical examples from the running EU project iNTeg-Risk.

Keywords:

• iNTeg-Risk project
• risk-risk tradeoff
• new technologies

Acknowledgments

The work presented here has involved support from the European Commission to the project iNTeg-Risk, the active collaboration with all iNTeg-Risk partners (over 80 companies and over 400 persons are involved in the project) and especially the team colleagues working on ERRAs A2, B1, C3, C5, and D1, as well as on Subproject 4 dealing with 1StopShop. The support above is acknowledged here gladly and with gratitude.