As such, risk assessments become increasingly critical in mitigating accidents, improving safety, and improving outcomes.
Rapid technological change, increasing scale of industrial complexes, increased system integration, market competition, and other factors have been shown to increase societal risk in the past few decades. Methods for assessment of risk may differ between industries and whether it pertains to general financial decisions or environmental, ecological, or public health risk assessment. Also, medical, hospital, social service, and food industries control risks and perform risk assessments on a continual basis. The agriculture, nuclear, aerospace, oil, railroad, and military industries have a long history of dealing with risk assessment. In the engineering of complex systems, sophisticated risk assessments are often made within safety engineering and reliability engineering when it concerns threats to life, environment, or machine functioning. As such, risk assessments of non-linear/complex systems tend to be more challenging. Systems may be defined as linear and nonlinear (or complex), where linear systems are predictable and relatively easy to understand given a change in input, and non-linear systems unpredictable when inputs are changed. Risk assessment can also be made on a much larger "systems" scale, for example assessing the risks of a nuclear power plant (an interactively complex mechanical, electronic, nuclear, and human system) or a hurricane (a complex meteorological and geographical system). For example, a fatality rate may be interpreted as less benign than the corresponding survival rate. The ways statistics are expressed and communicated, both through words and numerically also impact the interpretation of benefit and harm. A 2017 systematic review from the Cochrane collaboration suggests "well-documented decision aids" are helpful in reducing effects of such tendencies or biases. There is also a tendency to underestimate risks that are voluntary or where the individual sees themselves as being in control, such as smoking. There is a tendency for individuals to be less rational when risks and exposures concern themselves as opposed to others. Ī systematic review of patients and doctors from 2017 found that overstatement of benefits and understatement of risks occurred more often than the alternative.
Individual judgements or assessments of risk may be affected by psychological, ideological, religious or otherwise subjective factors, which impact rationality of the process. Risk assessment is necessary in individual cases, including patient and physician interactions.
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