Risks and Benefits

Assessment of Risks and Benefits

Experts and the general public have different assessment methods for risks and benefits. Consequently, they may have different perspectives on these two factors and about the relation between them. Experts in the specific field of the hazard, such as a nuclear scientist for a nuclear power station, mostly apply a multiattribute evaluation procedure to analyze possible risks and benefits in an effort to determine quantitatively whether an activity is acceptable for society and for the environment. They consider several aspects that are involved in the hazardous activity, quantify them if possible, and then sum them up to form an overall assessment. The aspects that are included in the assessment are, for example, the probability of the event, the type of consequences, the uncertainty of the risk, who will be harmed, whether there are especially vulnerable groups, the number of victims, the time frame of the consequences, the cumulative effects of exposure over time and in combination with other hazards, the reversibility of the risk and its costs, the hazard's benefits, and its alternatives. Thus, the hazard's benefits are part of a risk assessment.

A specific method that experts use to measure the balance between risks and benefits is a cost–benefit analysis. In this method, the total expected costs of an event (that is, its risks) are weighted against the total expected benefits. Both are expressed in monetary terms, which may be quite controversial if one has to value qualitative aspects such as human life. The activity is only recommended to be chosen if the benefits are larger than its costs. A cost–benefit analysis can also be conducted to choose one of several alternatives. The alternative with the largest expected benefits compared to costs would be selected. Experts and policymakers often use this kind of analysis to decide whether it is worthwhile to introduce a new activity.

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