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

Authors

  • Werner Pieterse University of Pretoria
  • Schalk Grobbelaar University of Pretoria
  • Jacobus Krige Visser University of Pretoria

DOI:

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

Keywords:

Decision making, risk assessment

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. 

Author Biographies

Werner Pieterse, University of Pretoria

Department of Engineering and Technology Management

Schalk Grobbelaar, University of Pretoria

Department of Engineering and Technology Management

Jacobus Krige Visser, University of Pretoria

Graduate School of Technology Management, Professor

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Published

2014-11-10

How to Cite

Pieterse, W., Grobbelaar, S., & Visser, J. K. (2014). EVALUATING THE ABILITY OF DECISION-MAKERS TO ESTIMATE RISKS EFFECTIVELY IN INDUSTRIAL APPLICATIONS. The South African Journal of Industrial Engineering, 25(3), 9–24. https://doi.org/10.7166/25-3-1006

Issue

Vol. 25 No. 3 (2014)

Section

General Articles

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