Problem
I. What form does the answers to each of the three questions of risk treatment take? Discuss what the answers are and how you might obtain them.
II. What analytic technique can you use to come up with answers to the question "what options are available?"
III. (i) What happens to the original system under study when an option for reducing risk is pursued? (ii) What implications does this have for future risk assessments?
IV. Why is it inappropriate for a risk analyst to dictate what decisions a decision maker should make? Explain using arguments grounded in benefit-cost analysis. (hint: think about "O"s added to both benefit and cost)
V. What is a factor-based model and what is it used for? Provide an example.
VI. What aspects of the four key risk questions listed below (the correct ones) can the risk analyst contribute to? Which aspects are generally off-limits to risk analysts? Explain.
i. Is Benefit/Cost >= minimum acceptable benefit cost ratio?
ii. Is the Cost <= maximum acceptable benefit cost ratio?
iii. Is the Benefit >= minimum desired benefit?
iv. Is the Risk <= maximum acceptable risk?