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Section
Appendix
4.2

Risk Decomposition

We can evaluate a risk by breaking it down into the probability of an adverse event and the amount of harm it would cause. This enables us to quantitatively compare various kinds of risks. If we have enough information, we can analyze risks further in terms of our level of exposure to them and how vulnerable we are to damage from them, as well as our ability to cope.

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Review Questions

Consider the hazard of icy roads posing a risk of a car crash. Construct the two-factor risk equation for this hazard.

Answer:

risk = probability(crash) * severity(crash)

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A more detailed equation breaks down the risk into hazard level, exposure, and vulnerability. Describe a measure we might take to reduce each of these factors.

Answer:

We could reduce the hazard level by putting grit on the roads. We could reduce exposure by minimising the amount of driving we do in icy conditions, i.e. only driving if it’s essential. We could reduce vulnerability by ensuring the car has appropriate safety features and always wearing a seatbelt, for example.

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