On the rationality of using risk acceptance criteria based on the expected utility theory

Eirik Bjorheim Abrahamsen

International Journal of Business Continuity and Risk Management, 2011, vol. 2, issue 1, 70-78

Abstract: Risk acceptance criteria, as upper limits of acceptable risk, are often used to control accident risk. In the literature, there is a discussion about the suitability of using such criteria. The purpose of this paper is to contribute to this discussion by questioning the rationale of using risk acceptance criteria in accordance with the ruling paradigm for decision-making under uncertainty – the expected utility theory. Attention is given to the rationality of using risk acceptance criteria from both a firm's and a societal point of view.

Keywords: risk acceptance criteria; expected utility theory; acceptable risks; risk control; accident risk; decision-making; uncertainty; societal aspects; business continuity; risk management. (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=40016 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbcrm:v:2:y:2011:i:1:p:70-78

Access Statistics for this article

More articles in International Journal of Business Continuity and Risk Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().