EVALUATING THE ABILITY OF DECISION-MAKERS TO ESTIMATE RISKS EFFECTIVELY IN INDUSTRIAL APPLICATIONS

Werner Pieterse, Schalk Grobbelaar, Jacobus Krige Visser

Abstract


There are many factors to be considered in risk management that influence the effective control of risk either beneficially or detrimentally. An improvement in the quality of risk analysis will enable risk managers and decision-makers to make more accurate decisions that would benefit all stakeholders. The aim of this research was to determine the effectiveness of the most commonly employed risk analysis methods. Two decision problems and two hypothetical risk analysis problems were presented to groups of respondents who were asked to choose a correct answer from the given options. The results showed no significant association between a person’s age or experience and their choice or decision about risk management. The only association was found between a higher level of professional qualification and the correct choice, when a decision problem was given without providing a decision tree. 


Keywords


Decision making; risk assessment

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DOI: https://doi.org/10.7166/25-3-1006

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Copyright (c) 2015 The South African Journal of Industrial Engineering


ISSN 2224-7890 (on-line) ; ISSN 1012-277X (print)


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