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The Role of Society in Engineering Risk Analysis: A Capabilities‐Based Approach

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  • Colleen Murphy
  • Paolo Gardoni

Abstract

This article proposes a new conceptual framework in engineering risk analysis to account for the net impact of hazards on individuals in a society. It analyzes four limitations of prevailing approaches to risk analysis and suggests a way to overcome them. These limitations are a result of how societal impacts are characteristically accounted for and valued. Prevailing approaches typically focus too narrowly on the consequences of natural or man‐made hazards, not accounting for the broader societal impacts of such hazards. Such approaches lack a uniform and consistent metric for accounting for the impact of the nonquantifiable consequences (like psychological trauma or societal impacts) and rely upon implicit and potentially inaccurate value judgments when evaluating risks. To overcome these limitations, we propose an alternative, Capabilities‐Based Approach to the treatment of society in risk analysis. A similar approach is currently used by the United Nations to quantitatively measure the degree of development in countries around the world. In a Capabilities‐Based Approach, the potential benefits and losses due to a hazard are measured and compared in a uniform way by using individual capabilities (functionings individuals are able, still able, or unable to achieve) as a metric. This Capabilities‐Based Approach provides a foundation for identifying and quantifying the broader, complex societal consequences of hazards and is based on explicit, value judgments. The Capabilities‐Based Approach can accommodate different methods or techniques for risk determination and for risk evaluation and can be used in assessing risk in diverse types of hazards (natural or man‐made) and different magnitudes that range from minor to catastrophic. In addition, implementing a Capabilities‐Based Approach contributes to the development of a single standard for public policy decision making, since a Capabilities‐Based Approach is already in use in development economics and policy.

Suggested Citation

  • Colleen Murphy & Paolo Gardoni, 2006. "The Role of Society in Engineering Risk Analysis: A Capabilities‐Based Approach," Risk Analysis, John Wiley & Sons, vol. 26(4), pages 1073-1083, August.
    • Handle: RePEc:wly:riskan:v:26:y:2006:i:4:p:1073-1083
    DOI: 10.1111/j.1539-6924.2006.00801.x
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    References listed on IDEAS

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    1. Yacov Y. Haimes, 1999. "The Role of the Society for Risk Analysis in the Emerging Threats to Critical Infrastructures," Risk Analysis, John Wiley & Sons, vol. 19(2), pages 153-157, April.
    2. Sudhir Anand & Amartya Sen, 2000. "The Income Component of the Human Development Index," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 83-106.
    3. Sudhir Anand and Amartya Sen, 2000. "The Income Component of Human Development Index," Human Development Occasional Papers (1992-2007) HDOCPA-2000-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    4. Stanley Kaplan & B. John Garrick, 1981. "On The Quantitative Definition of Risk," Risk Analysis, John Wiley & Sons, vol. 1(1), pages 11-27, March.
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    Citations

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    Cited by:

    1. Paolo Gardoni & Colleen Murphy, 2014. "A Scale of Risk," Risk Analysis, John Wiley & Sons, vol. 34(7), pages 1208-1227, July.
    2. David J. Yu & Michael L. Schoon & Jason K. Hawes & Seungyoon Lee & Jeryang Park & P. Suresh C. Rao & Laura K. Siebeneck & Satish V. Ukkusuri, 2020. "Toward General Principles for Resilience Engineering," Risk Analysis, John Wiley & Sons, vol. 40(8), pages 1509-1537, August.
    3. Armin Tabandeh & Paolo Gardoni & Colleen Murphy, 2018. "A Reliability‐Based Capability Approach," Risk Analysis, John Wiley & Sons, vol. 38(2), pages 410-424, February.
    4. Colleen Murphy & Paolo Gardoni, 2010. "Assessing capability instead of achieved functionings in risk analysis," Journal of Risk Research, Taylor & Francis Journals, vol. 13(2), pages 137-147, March.
    5. Yang, Yongsheng & Liu, Huan & Mostafavi, Ali & Tatano, Hirokazu, 2025. "Review on modeling the societal impact of infrastructure disruptions due to disasters," Reliability Engineering and System Safety, Elsevier, vol. 257(PB).
    6. Tabandeh, Armin & Sharma, Neetesh & Gardoni, Paolo, 2022. "Uncertainty propagation in risk and resilience analysis of hierarchical systems," Reliability Engineering and System Safety, Elsevier, vol. 219(C).
    7. Guoqiang Shen & Long Zhou & Yao Wu & Zhiming Cai, 2018. "A Global Expected Risk Analysis of Fatalities, Injuries, and Damages by Natural Disasters," Sustainability, MDPI, vol. 10(7), pages 1-17, July.
    8. Silva-Lopez, Rodrigo & Bhattacharjee, Gitanjali & Poulos, Alan & Baker, Jack W., 2022. "Commuter welfare-based probabilistic seismic risk assessment of regional road networks," Reliability Engineering and System Safety, Elsevier, vol. 227(C).
    9. Lin, Yu & Fu, Yuguang & Sun, Jubo & Xie, Ruihong & He, Xinhao, 2026. "Robust seismic response evaluation considering an uncertainty emerging in asymmetric bridges," Reliability Engineering and System Safety, Elsevier, vol. 266(PB).
    10. Boakye, Jessica & Guidotti, Roberto & Gardoni, Paolo & Murphy, Colleen, 2022. "The role of transportation infrastructure on the impact of natural hazards on communities," Reliability Engineering and System Safety, Elsevier, vol. 219(C).
    11. Gujun Pu, 2025. "What Constitutes a Successful Livelihood Recovery: A Comparative Analysis Between China and New Zealand," Sustainability, MDPI, vol. 17(7), pages 1-25, April.
    12. Regina Schoell & Claudia R. Binder, 2009. "System Perspectives of Experts and Farmers Regarding the Role of Livelihood Assets in Risk Perception: Results from the Structured Mental Model Approach," Risk Analysis, John Wiley & Sons, vol. 29(2), pages 205-222, February.

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