9. Ninth Lesson: Risk-Informed Decision-Making Framework

This chapter delves into the debate surrounding risk-informed decision-making within health, environment, and safety (HES) management. It contrasts mechanistic approaches, which rely heavily on Risk Tolerance Criteria (RTC), with comprehensive frameworks that incorporate various factors for management to evaluate. The text highlights the challenges faced by current decision-making frameworks, such as understanding uncertainties, using diverse decision and risk analysis tools, and effectively communicating the decision basis. It proposes a risk-informed decision-making framework grounded in risk management, emphasizing the importance of hazard identification, risk tolerability, uncertainty management, and the priority of risk-reducing measures. The framework is illustrated through a four-step process: establishing the decision context, framing the decision problem, generating and evaluating decision alternatives, and managerial review and judgment. The chapter also discusses the evolution of the decision-making approach within the Norwegian offshore industry, noting shifts in focus from risk reduction to profit maximization. It concludes by addressing the importance of trust in the decision-making process and the potential need for regulatory authorities to define justifiable RTC.