Exposure of the banking system to the Global Financial Crisis attracted attention to the study of riskiness and spillover. This paper studies the pattern of systemic risk and size effect in the Indian banking sector. Based on market capitalization, three public sector banks and three from the private sector were taken. Data are taken from the year 2007 to 2020. The analysis is done through quantile- CoVaR and TENET measure. State variables like Indian market volatility and global (...) class='Hi'>risk measures negatively influence the Indian banks’ returns. Liquidity risk is a crucial aspect of private banks. Public banks experience public confidence even in the distress period. Large banks like HDFC and SBI bank offer the highest degree of systemic risk contribution. The role of private banks in transmitting systemic risk has been intensifying since 2015. Small-sized banks like PNB and BOB have become significant receivers and transmitters of risk. (shrink)

(2013). Introduction: Methodology, systemic risk, and the economics profession. Journal of Economic Methodology: Vol. 20, Methodology, Systemic Risk, and the Economics Profession, pp. 1-5. doi: 10.1080/1350178X.2013.774842.

This paper suggests that “systemic risk” has a distinctive kind of moral significance. Two intuitive data points need to be explained. The first is that the systematic imposition of risk can be wrongful or unjust in and of itself, even if harm never ensues. The second is that, even so, there may be no one in particular to blame. We can explain both ideas in terms of what I call responsibilities of “Collective Due Care.” Collective Due Care (...) arguably precludes purely aggregative cost-benefit decision-making and requires one kind of “precautionary” attitude in public choice. (shrink)

Based on the daily data from January 2, 2019, to September 30, 2020, this paper uses the extended CoVaR model to measure the spillover effect of systemic risk among top 10 securities companies by market value in China, All Share Brokerage Index, All Share Financials Index, All Share Insurance Index, and CSI Banks Index. The conclusions are as follows: there are risk spillover effects among 10 securities companies, which are asymmetric and bidirectional and highly volatile in a (...) short period of time; the spillover effect of systematic risk of securities companies is not necessarily related to the market value of securities companies but has a strong relationship with the stock market; there are risk spillover effects between the sample securities companies and the four major indexes, but there are significant differences in the size of the spillover effects; the securities industry has a great risk spillover effect on the financial industry, but the risk spillover effect of other financial sectors on the securities industry is very small. Finally, we put forward countermeasures and suggestions. (shrink)

ABSTRACTThe aim of this paper is twofold. Firstly, to examine questions about the role and responsibilities of transaction lawyers working in the financial sector that, it is argued here, deserve closer scrutiny than they have hitherto received since the banking and economic crisis of 2008. It considers the manner in which the conduct of such lawyers in the pre-crisis financial markets may have played a particular role in contributing to the sources of latent risk that bore systemic fruit (...) in 2008. It poses the question, ‘Could they have acted differently?’. The first section concludes that there are strong and persuasive arguments both for and against reorienting the responsibilities of the transaction lawyer to include some obligation to take account of the risk to the financial system which the transactions they are conducting for their clients may pose. Secondly, this paper explores ways in which, nonetheless, financial sector lawyers could – and indeed should – be expected to play a part... (shrink)

Recent technological advancements have deeply transformed society and the way people interact with each other. Instantaneous communication platforms have allowed connections with other people, forming global communities, and creating unprecedented opportunities in many sectors, making access to online resources more ubiquitous by reducing limitations imposed by geographical distance and temporal constrains. These technological developments bear ethically relevant consequences with their deployment, and legislations often lag behind such advancements. Because the appearance and deployment of these technologies happen much faster than legislative (...) procedures, the way these technologies affect social interactions have profound ethical effects before any legislative regulation can be built, in order to prevent and mitigate those effects. Ethics in Online AI-Based Systems: Risks and Opportunities in Current Technological Trends features a series of reflections from experts in different fields on potential ethically relevant outcomes that upcoming technological advances could bring about in our society. Creating a space to explore the ethical relevance that technologies currently still under development could have constitutes an opportunity to better understand how these technologies could or should not be used in the future in order to maximize their ethically beneficial outcomes, while avoiding potential detrimental effects. Stimulating reflection and considerations with respect to the design, deployment and use of technology will help guide current and future technological advancements from an ethically informed position in order to ensure that, tomorrow, such advancements could contribute towards solving current global and social challenges that we, as a society, have today. This will not only be useful for researchers and professional engineers, but also for educators, policy makers, and ethicists. (shrink)

The lack of engagement of philosophy with decisions made under conditions of risk and uncertainty has lately received increasing attention. But philosophers have devoted little thought to the development of a conceptual framework for distinguishing different types of risks. This article begins by illustrating the need for a more nuanced conceptual framework. As the normative considerations risks give rise to are highly varied, ethicists need to distinguish between different types of risks. It then offers two ideas. First, it proposes (...) that we understand ‘risk’ as a multi-dimensional concept, i.e. a concept that can always be evaluated in different dimensions, e.g. a qualitative, a quantitative and an epistemic dimension. While this understanding of risk underlies the current practice of risk analysis, making it explicit is of value, in particular for the philosophical debate. It draws attention to the diversity of risks, helps to group them sensibly and sharpens existing arguments. Second, the article introduces a novel account of the notion ‘systemic risk’. Criticising existing accounts, it proposes we understand ‘systemic risk’ as referring to a risk that endangers the functioning of a system and originates in the system or its background noise, where a system is conceived of as a set of interdependent, interacting components that form a complex, functionally defined whole. The article identifies a number of structural features shared by systemic risks and evaluates the distinctive normative considerations they give rise to. It then argues that the notion ‘systemic risk’ is particularly suited to characterise some of the most pressing risks faced in an increasingly interconnected world. While the notion ‘systemic risk’ rests on the understanding of ‘risk’ as a multi-dimensional concept, it also complements it. Its necessity shows that in addressing risks, it is sometimes helpful to move beyond a characterisation based solely on their dimensions. (shrink)

The purpose of this paper is two-fold. First, this study measures the contribution of banks and non-bank financial institutions toward the systemic risk of China. Second, the present study investigates the relationship between CEO power, CEO overconfidence, and systemic risk. This study uses the Delta Conditional Value-at-Risk method to measure the systemic risk contribution of firms listed on the Shenzhen and Shanghai stock exchanges over a period of 2006–2018. The results show that non-bank (...) financial institutions are systemically more important compared to banks. We employed fixed-effect regression analysis to show that banks with overconfident CEOs increase the firm’s systemic risk. The results also confirm that powerful CEOs enhance the contribution of non-bank financial institutions to systemic risk, whereas CEO power’s impact was significant only for non-state-owned banks. The findings were further validated by the robustness test results obtained using the two-stage least squares approach. These findings are important for constructing regulations to reduce the contribution of firms to systemic risk. (shrink)

Building on an illustrative case of a systemic environmental threat and its multi‐stakeholder response, this paper draws attention to the changing political impacts of corporations in the digital age. Political Corporate Social Responsibility (PCSR) theory suggests an expanded sense of politics and corporations, including impacts that may range from voluntary initiatives to overcome governance gaps, to avoiding state regulation via corporate political activity. Considering digitalization as a stimulus, we explore potential responsibilities of corporations toward public goods in contexts with (...) functioning governments. We show that digitalization—in the form of transparency, surveillance, and data‐sharing—offers corporations’ scope for deliberative public participation. The starry sky beetle infestation endangering public and private goods is thereby used to illustrate the possibility of expanding the political role of corporations in the digital sphere. We offer a contribution by conceptualizing data‐deliberation as a Habermasian variation of PCSR, defined as the (a) voluntary disclosure of corporate data and its transparent, open sharing with the public sector (b) along with the cooperation with governmental institutions on data analytics methods for examining large‐scale datasets (c) thereby complying with existing national and international regulations on data protection, in particular with respect to privacy and personal data. (shrink)

We propose a model of evolving protection against systemic risk related to recovery. Using the failure potential in network-agent dynamics, we present a process-based simulation that provides insights into alternative interventions and their mechanical uniqueness. The fundamental operating principle of this model is that computation allows greater emphasis on optimizing the recovery within the general regularity of random network dynamics. The rules and processes that are used here could be regarded as useful techniques in systemic risk (...) measurement relative to numerical failure reduction analyses. (shrink)

International regulation of autonomous weapon systems (AWS) is increasingly conceived as an exercise in risk management. This requires a shared approach for assessing the risks of AWS. This paper presents a structured approach to risk assessment and regulation for AWS, adapting a qualitative framework inspired by the Intergovernmental Panel on Climate Change (IPCC). It examines the interactions among key risk factors—determinants, drivers, and types—to evaluate the risk magnitude of AWS and establish risk tolerance thresholds through (...) a risk matrix informed by background knowledge of event likelihood and severity. Further, it proposes a methodology to assess community risk appetite, emphasizing that such assessments and resulting tolerance levels should be determined through deliberation in a multistakeholder forum. The paper highlights the complexities of applying risk-based regulations to AWS internationally, particularly the challenge of defining a global community for risk assessment and regulatory legitimization. (shrink)

Purpose This paper aims to expose the challenges facing the attempt by Jamaica to introduce a new digital ID system without adequate regard to public consultation and the rights of citizens. Design/methodology/approach The method used is critical text analysis and policy analysis, providing background and relevant factors leading up to the legislative changes under review. Extensive literature sources were consulted and the relevant sections of the Jamaican constitution referenced and analysed. Findings The case study may have national peculiarities not applicable (...) in other jurisdictions. Its introduction acknowledges that the Jamaican Government may amend and re-submit the legislation, absent the flawed clauses. The paper however will remain valid given its detailed analysis and exposure of risks associated with biometric data collection, face recognition technology and data storage flaws. Practical implications It will be a practical example of the risks associated with flawed biometric data collection and the role of Courts in reviewing such legislation. Referrals to the Courts can be used as a remedy, as occurred not only in Jamaica but also in many other jurisdictions, including India and Kenya. Social implications The paper foregrounds the rights of citizens to be consulted on the collection and storage of their sensitive biometric data. The social implications and risks of violating the constitutional rights of citizens were made evident, and can be an example to other jurisdictions. Originality/value The paper is the first of its kind to provide detailed data and analysis on an outright rejection by the Courts of a country's ID legislation on grounds that it violated the constitution and rights of citizens. It shows the ethical and social challenges in proposing and implementing legislation without adequate public consultation on such sensitive matters as biometric data. It also exposes some of the challenges of artificial intelligence and face recognition technologies in ID data collection, including flaws related to race, gender and coding. (shrink)

Recommender systems are recently developed computer-assisted tools that support social and informational needs of various communities and help users exploit huge amounts of data for making optimal decisions. In this study, we present a new recommender system for assessment and risk prediction in child welfare institutions in Israel. The system exploits a large diachronic repository of manually completed questionnaires on functioning of welfare institutions and proposes two different rule-based computational models. The system accepts users’ requests via a simple graphical (...) interface, calculates the institutions’ profiles according to user preferences, and presents assessment scores, trends and comparative analyses of the corresponding data using assorted visual aids. Based on the analysis, the system offers three different strategies for objective assessment of the institutions’ functioning and risks. Qualitative and quantitative evaluation of the system’s effectiveness and accuracy demonstrates that it substantially improves the assessment process of a welfare institution. Moreover, it provides an effective tool for objective large-scale analysis of the institution’s overall state and trends, which were previously based primarily on the institution supervisors’ subjective judgment and intuition. In addition, the proposed recommender system has great practical and social impact as it may help identify and avert potential problems, malfunctions, flaws, risks and even tragic incidents in child welfare institutions, as well as increase their overall functioning levels. As a result, as a long-term social implication, the system may also help reduce inequality and social gaps in the Israeli society. (shrink)

This study explains risk transfer, associated with debt-basedfinancing, as the main cause of financial crises in the world. It presents the casefor a financial architecture based on risk sharing that, in turn, is likely to makethe financial system less fragile and more stable. This study also highlights thesignificance of Islamic finance in this regard.

Critical analyses of international financial markets tend to explain changes over recent decades in terms of a resurgent liberalism. This paper employs a systems theoretical approach to argue that there has been a far more fundamental transformation in the operations of these financial markets than simply a shift towards more liberalized regimes of regulation. The use of risk as resource and the systematic randomness of these new operational trends have perverse implications not only for the integrity of political systems (...) but also for the neoliberal promoters and players inside the new complex system of global finance. (shrink)

With the increase in depth of coal mining, the hydrogeological complexity largely increases and water inrush accidents happen more frequently. For the safety of coal mining, horizontal directional drilling and grouting techniques have been implemented to detect and plug the fractures and conduits that deliver high-pressure groundwater to coal mine. Taking the grouting engineering performed at Xingdong coal mine at 980 m below sea level as an example, we collected the data of grouting quantity, the loss of drilling fluid, gamma (...) value, water temperature, average water absorption, distance between grouting loss points, water pressure on coal seam floor, and aquifuge thickness at 90 boreholes in the mine to conduct grey relational analysis, first. The analysis showed that the grouting quantity was highly correlated with all other factors. Subsequently, grey system evaluation was used to evaluate the risk of water inrush from the coal seam floor. The results of risk analysis illustrated that three water inrushes from Ordovician limestone occurred in mining face 2127, 2125, and 2222 in the study area were all located in the area with a risk score higher than 65. Through grouting, the identified cracks were effectively blocked and waterproof layers beneath the coal seam floors were constructed to reduce the threat of water inrush. By comparing the risk assessment results with three water inrush cases before grouting operation, we found that water inrush areas were consistent with the area of higher risk. (shrink)

The purpose of this paper is to examine the outcomes arising from ideologically driven health reforms, which confronted an enduring socialized model of public health care in New Zealand. The primary focus is on the narratives arising from the unprecedented strike action of junior doctors, symbolic of industrial unrest in the public health sector. Analysis revealed the way in which moral obligations ingrained in the professional identities of junior doctors can be both enacted and persistently challenged by ongoing and extensive (...) ideologically embedded reform. A socialized public healthcare system privileges cooperation and relies on a public service ethos, espousing commitment and goodwill of health professionals. The inverse tenets of a pursuit of efficiency through New Public Management validate an ideology of market principles which legitimate competitive and self-interested behavior. The value-based disconnect that occurred not only affected the goodwill and trust of junior doctors, but also destabilized their commitment to their work in a way that threatened the ongoing sustainability of the public health service. This paper suggests four areas in which research might help solve the ethical conundrums currently undermining a public health service. The suggested direction moves the emphasis on systems and activities toward the cognitive and emotional needs of healthcare professionals. (shrink)

Gils-Schmidt and Salloch recognise that human and climate health are inextricably linked, and that mitigating healthcare-associated climate harms is essential for protecting human health.1 They argue that physicians have a duty to consider how their own practices contribute to climate change, including during their interactions with patients. Acknowledging the potential for conflicts between this duty and the provision of individual patient care, they propose the application of Korsgaard’s neo-Kantian account of practical identities to help navigate such scenarios. In this commentary, (...) we argue that by focusing attention on this physician–patient level, the authors overlook the complexity of climate change, both within the healthcare sector and beyond. We recognise the importance of individual agency in tackling this issue, and we also recognise that the authors do briefly acknowledge the importance of considering these broader complexities; however, we emphasise the need for climate and health discussions/action to be situated in a wider framework of systemic change. Our concern is that overemphasis on patient-level interactions risks normalising the prioritisation of individual-level approaches to addressing climate change, detracting from such a broader approach. Physician training emphasises the need for trust, confidentiality and shared decision-making in the doctor–patient relationship. …. (shrink)

Systemic financial risk is one of the most significant collective action problems facing societies. The Great Recession brought attention to a tragedy of the commons in capital markets, in which market participants, from the first-time homebuyer to Wall Street financiers, acted in ways beneficial to themselves individually, but which together caused substantial collective harm. Two kinds of risk are at play in complex chains of transactions in financial markets: ordinary market risk and systemic risk. (...) Two moral questions are relevant in such cases. First, from the standpoint of interactional morality, does a person have a moral duty to avoid risk of harm to others if their financial transactions contribute in some way, however small, to the loss or harm? This article identifies the conditions in which persons are morally responsible in such cases. Second, from the standpoint of institutional morality, how should society distribute the risk of harm associated with massively complex financial markets? This question is considered in the context of the home mortgage credit market. Luck egalitarianism, in particular a Dworkinian insurance scheme to allocate risks and resources relating to mortgage credit and private home ownership, offers substantial promise. (shrink)

Financial risks are among the most important risks in the construction industry projects, which significantly impact project objectives, including project cost. Besides, financial risks have many interactions with each other and project parameters, which must be taken into account to analyze risks correctly. In addition, a source of financial risks in a project is the contract, which is the most important project document. Identifying terms related to financial risks in a contract and considering their effects on the risk management (...) process is an essential issue that has been neglected. Hence, an integrated model for evaluating financial risks and their related contractual clauses were presented. To this end, the effect of financial risks on the project cost was simulated using a system dynamics model. Moreover, terms related to financial risks in a contract text were identified and extracted using text mining, and their effect was included in the system dynamics model. The model was implemented in a hospital construction project in Tehran as a case study, and its results were analyzed. The innovation of the research is integrating text mining and the system dynamics model to investigate the effect of financial risks and related contractual clauses on the project cost. (shrink)

Clinicians and administrators have a professional obligation to contribute to improvement of healthcare quality. At the same time, participation in embedded research poses risks to healthcare institutions. Disclosure of an institution’s sensitive information could endanger relationships with patients and undermine its reputation. The existing ethical framework for learning healthcare systems does not address the conflict between the OTC and institutional interests. Ethical guidance and policy regulation are needed to create a safe environment for embedded research. In this article we analyse (...) the EF for LHSs and the concept of professionalism. We suggest that the EF should be supplemented with an obligation to protect provider’s legitimate interests. We define legitimate interests as those that enable providers to discharge their primary duties. We argue that both the OTC and the obligation to protect legitimate interests are grounded in the concept of medical professionalism and can be understood as a matter of contract between a democratic society and medical professionals. The proposed supplemented EF can be implemented into a regulatory system in three different ways: the self-regulating: where providers decide themselves how to balance the ethical claims, the centralised: where a governmental institution decides the right balance between providers’ interests and interests of a health system; and the mediating: where medical professionals, the state and patients negotiate their interests. Our article contributes to the discussion on ethical relevance of providers’ interests and the regulatory model for weighing opposite interests in LHSs. (shrink)

This paper argues that some of the major theories in current business ethics fail to provide an adequate account of moral responsibility for the creation of systemic financial risk. Using the trading of credit default swaps during the 2008 financial crisis as a case study, I will formulate three challenges that these theories must address: the problem of risk imposition, the problem of unstructured collective harm and the problem of limited knowledge. These challenges will be used to (...) work out key shortcomings of stakeholder approaches and Integrative Social Contracts Theory. I will argue that pluralist connection models used in political theory can help to overcome these shortcomings. Adopting an approach based on these models shows that financial institutions incur obligations in five main areas: managing their own risk profile; remedying some of the harms caused by financial crises; supporting the development of better epistemic methods; curbing the transmission and amplification of initial losses; and instigating structural reforms. (shrink)

This paper argues that some of the major theories in current business ethics fail to provide an adequate account of moral responsibility for the creation of systemic financial risk. Using the trading of credit default swaps (CDS) during the 2008 financial crisis as a case study, I will formulate three challenges that these theories must address: the problem of risk imposition, the problem of unstructured collective harm and the problem of limited knowledge. These challenges will be used (...) to work out key shortcomings of stakeholder approaches and Integrative Social Contracts Theory. I will argue that pluralist connection models used in political theory can help to overcome these shortcomings. Adopting an approach based on these models shows that financial institutions incur obligations in five main areas: managing their own risk profile; remedying some of the harms caused by financial crises; supporting the development of better epistemic methods; curbing the transmission and amplification of initial losses; and instigating structural reforms. (shrink)

The European Union Data Protection Regulation will have profound implications for public health, health services research and statistics in Europe. The EU Commission's Proposal was a breakthrough in balancing privacy rights and rights to health and healthcare. The European Parliament, however, has proposed extensive amendments. This paper reviews the amendments proposed by the European Parliament Committee on Civil Liberties, Justice and Home Affairs and their implications for health research and statistics. The amendments eliminate most innovations brought by the Proposal. Notably, (...) derogation to the general prohibition of processing sensitive data shall be allowed for public interests such as the management of healthcare services, but not health research, monitoring, surveillance and governance. The processing of personal health data for historical, statistical or scientific purposes shall be allowed only with the consent of the data subject or if the processing serves an exceptionally high public interest, cannot be performed otherwise and is legally authorised. Research, be it academic, government, corporate or market research, falls under the same rule. The proposed amendments will make difficult or render impossible research and statistics involving the linkage and analysis of the wealth of data from clinical, administrative, insurance and survey sources, which have contributed to improving health outcomes and health systems performance and governance; and may illegitimise efforts that have been made in some European countries to enable privacy-respectful data use for research and statistical purposes. If the amendments stand as written, the right to privacy is likely to override the right to health and healthcare in Europe. (shrink)

As genetic testing for the presence of potentially health-affecting mutations becomes available for more genetic conditions, many people will soon be faced with the decision of whether or not to have a genetic test. Making an informed decision requires an understanding and evaluation of the arguments for and against having the test. As a case in point, this paper considers argumentation involving the decision of whether to have a BRCA gene test, one of the first commercially available genetic tests. First, (...) argumentation in a five-page patient brochure from a for-profit company that provides BRCA gene testing, is analyzed. Next, for comparison, argumentation on BRCA testing in materials for healthcare consumers written by a not-for-profit health plan and a government organization, is analyzed. In view of the challenges identified by considering these examples, this article discusses how argumentation-oriented computer systems may be able to help the healthcare consumer to make informed decisions about genetic testing. (shrink)

In this paper, I propose and defend a distinct and novel approach to compensation for risk impositions. I call it the Risk-Pooling System of compensation. This system suggests that when X performs an action that imposes a risk of harm to Y, then X is liable to Y, and is therefore obliged to make an ex ante compensation that is roughly equivalent to the expected cost of potential harm to a social- risk pool. If and when (...) Y suffers harm as a result of the risk imposed by X, they then receive an ex post compensation roughly equivalent to the cost of actual harm suffered. This system of compensation creates a social buffer between the risk imposer – the one who has the duty to pay compensation into the pool – and the victim – the one who has the right to receive compensation from the social pool. I contend that the Risk-Pooling System is an improvement over its alternatives due to its capacity to produce the best social utilities, particularly, in terms of reducing information costs, obtaining optimal deterrence in the society and creating incentives for people to be engaged in social activities. (shrink)

There is an enduring tension in thinking about the architecture of systems that select behaviours, including evolved organisms. One line of reasoning supports convergence in control systems and conversion of the values of all options into a common currency, in part because this seems the best or only way of trading off costs and benefits associated with outcomes of varying types. A competing consideration supports parallelism or other forms of fragmentation, because of inefficiencies associated with integration, and suspicion towards general-purpose (...) cognitive systems. In addition, recent neuroscience has given particular attention to the question of how partly independent ‘habit based’ and ‘planning based’ decision-systems might interact. The issues here are, at least in part, a special case of the more general integration versus parallelism tension. This tension provides a useful framework for thinking about the implementation of different kinds of sensitivity to risks of various types, the variety of mechanisms by means of which risk sensitivity might be modulated, and how risk might be traded off against other components of value or disincentive. I describe the tension, briefly survey some of the relevant empirical evidence, and conclude with tentative observations on the topic of risk. (shrink)

The robustness of a health system can often be assessed by its response to unpredictable circumstances that demand resourcefulness and resilience. The ongoing COVID-19 pandemic has similarly challe...

Focusing on the controversial birth control pills Yaz and Yasmin, this article explores how debates about the safety of these drugs have materialized in risk evaluations and the management of technological risk. Drawing on in-depth interviews with stakeholders and content analysis of legal, medical, and regulatory documents, I highlight how professional contraceptive risk assessment is characterized by systemic uncertainty and doubt, resulting in increased responsibility for users themselves to manage the drugs’ potentially increased risks of venous (...) thromboembolism. The analysis centers on three key areas in the assessment process that denote disagreement: risk measurement in postmarket surveillance data, the distinctiveness of the drugs’ benefits when compared to other contraceptive technologies, and the weighing of the risks and benefits against each other. While professionals negotiate uncertainty both in epidemiological research and in clinical practice, users are constructed as agents who should manage risk individually. Such processes are underlined by a diffusion of responsibility in the systemic management of contraceptive risk. This article suggests, more broadly, that medical technologies can be conceptualized as artifacts that are instrumental in the dispersion of risks. (shrink)

With the continuous development of the stock market, designing a reasonable risk identification tool will help to solve the irrational problem of investors. This paper first selects the stocks with the most valuable investment value in the future through the random forest algorithm in the nine-factor model and then analyzes them by using the higher-order moment model to find that different investors’ preferences will make the weight of the portfolio change accordingly, which will eventually make the optimal return and (...) risk set of the composition of the portfolio change. The risk identification system designed in this paper can provide an effective risk identification tool for investors and help them make rational judgments. (shrink)

This paper is devoted to showing that a safety priority should be accorded the highest priority in decision-making and that such a prioritisation is an ethical responsibility. The connection between a safety-first priority and ethics is that an ultimate concern for safety is an integral feature of respect for human life. This paper exposes the illogic behind the misleading phrase "risky technology" and the fallacies which underlie the seemingly morally neutral phrase "risk assessment". It is argued that human beings (...) ultimately possess the responsibility of the choice to employ one technological system as over another and hence the decision to employ unsafe technology is a case of "risky assessment" rather than "risky technology". The phrase "risky technology" implies that the risk factor is inherent to the technology when the risk factor is inherent to the choice of which technology to employ. Risk assessment has been portrayed as amoral numerical calculation without clarifying the basis of the assessment. It is argued here that risk assessment must include the basis of its figures and that, to be epistemologically sound, the basis should be past engineering performance and not "subjective engineering judgement". To be ethically sound, risk assessment must take into account not only probabilities of occurrence but consequences of occurrence, such as life or death risks to risk takers and all those on whom the risk taken will ultimately make an impact. It is argued that risk takers possess a right to know of the specific risks to which they are exposing themselves and that risk makers possess the corresponding duty to inform risk takers. The Challenger case is utilised as a lesson in unsound and unethical risk assessment. It is also utilised as a case in which the right of the astronauts and civilian passengers to know of the risk they were taking was not respected and the ethical duty to inform the astronauts and civilian passengers of the risk they were taking was not observed. Distinctions are drawn between general and unknown risks of space travel and the specifically foreknown risks of a design deficient O-ring which malfunctioned below specific temperature readings. The belief that progress requires risk taking is exposed as an oversimplification since progress can be made as in the case of the development of commercial air travel without taking reckless risks. Passenger aircraft must meet certain criteria of safety to be operable but this is not an obstacle to progress. The observance of the right to know and the duty to inform is an asset to business. In the case of Delta Airlines and Northwest Airlines, the decision to notify the public of bomb threats may have given business a boost since passengers have deduced in absence of such a threat that their flight was a safe one as they trusted these airlines. (shrink)

The Australian HREC system is experiencing increasing workloads and greater public scrutiny. Dr Dodds asks whether the system is sustainable and aims to encourage a constructive critical debate about the system. This article suggests there is a gap between the demands on the system and expectations of researchers, regulators and the community. The evolution of the HREC system reached a significant milestone of the publication of the National Statement on Ethical Conduct in Research Involving Humans. This article argues that there (...) will be increases in HREC workloads and new challenges from human genetic research, commercialisation of research and clinical trials. The Andrews Committee has recommended another independent review of the system. The system is also under review by the joint ALRC/ahec inquiry into the protection of human genetic information. (shrink)

In light of the potential long-term societal and economic benefits of novel nano-enabled products, there is an evident need for research and development to focus on closing the gap in nano-materials safety. Concurrent reflection on the impact of decision-making tools, which may lack the capability to assist sophisticated judgements around the risks and benefits of the introduction of novel products, is essential. This paper addresses the potential for extant decision support tools to default to a precautionary principle position in the (...) face of uncertainty. A more utilitarian-based approach could be facilitated by adding simple methods to formulate realistic hypotheses, which would assist non-specialists to make more nuanced decisions in terms of managing the risks of introducing new NMs. A decision support analytical framework is applied to identify the potential risks and benefits of novel nano-enabled products such as textiles with in-built enhanced antimicrobial activity for the prevention of nosocomial infections produced by spray or sonochemical coating possesses. While the results demonstrate valuable societal and environmental benefits compared to conventional products, due to uncertainty regarding the possible hazard to humans, sizable risks were identified in some cases due to the precautionary principle. (shrink)

Management of modern economic systems in the context of increasing influence of different types of risks requires significant improvement. Among such systems are logistics systems, which play an important role in the optimization of economic processes and require the use of information technology, which will facilitate faster and more accurate management decisions making. The purpose of scientific work is to develop a new approach to risk management of logistics systems, which will allow to plan more effectively, evaluate and control (...) logistics processes by using information technology. To ensure more flexible risk management, it is possible to change the parameters and configuration of the recommended model in accordance with the conditions of its formation. (shrink)

Since the foundation of the Santa Fe Institute, the new science of complex adaptive systems has seen extraordinary development, breaking with previous, more epistemological, trends in complexity theory. This article makes a critique of CAS as a model of the current global complexity. Its basic model, the cellular automaton, which focuses on the interactive dynamics among components, ignores the nature of any complex system as constructed by the observer/actor and is unable to explain the sociohistorical construction of the agents/subjects and (...) the social structure in which they are located, thus being unable to accurately represent the overall social complexity. (shrink)