A new approach to risk analysis with a focus on organizational risk factors

Preventing accidents in complex socio-technical systems requires an approach to risk management that continuously monitors risk and identifies potential areas of concern before they lead to hazards, and constrains hazards before they lead to accidents. This research introduces the concept of continuous participative risk management, in which risks are continuously monitored throughout the lifetime of a system, and members from all levels of the organization are involved both in risk analysis and in risk mitigation. One aspect of effective risk management is accurate risk analysis that takes account of technical, human, and organizational factors. This research develops a new approach to risk analysis that improves on event-based models to include risks that do not depend only on component or subsystem failures, and incorporates both human and organizational factors. The approach enables the early identification of risk mitigation strategies, aids in the allocation of resources to best manage risk, and provides for the continuous monitoring of risk throughout the system lifecycle. Organizational factors have been identified as a significant aspect of accidents in complex socio-technical systems. Properly managing and assessing risk requires an understanding of the impact of organizational factors on risk. Three popular theories of organizational risk, normal accidents theory (NAT), high reliability organizations (HRO), and normalization of deviance, are reviewed. While these approaches do provide some useful insights, they all have significant limitations, particularly as a basis for assessing and managing risk. This research develops the understanding of organizational risk factors by focussing on the dynamics of organizational risk.