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Managingriskstothepublic:appraisalguidanceJune2005Managingriskstothepublic:appraisalguidanceJune2005HMTreasurycontactsThisdocumentcanbeaccessedfromtheTreasuryInternetsiteat:www.hm-treasury.gov.ukForfurtherinformationontheTreasuryanditswork,contact:CorrespondenceandEnquiryUnitHMTreasury1HorseGuardsRoadLondonSW1A2HQTel:02072704558Fax:02072704861E-mail:ceu.enquiries@hm-treasury.gov.ukISBN:1-84532-061-1©Crowncopyright2005PublishedwiththepermissionofHMTreasuryonbehalfoftheControllerofHerMajesty’sStationeryOffice.Thetextinthisdocument(excludingtheRoyalCoatofArmsanddepartmentallogos)maybereproducedfreeofchargeinanyformatormediumprovidingthatitisreproducedaccuratelyandnotusedinamisleadingcontext.ThematerialmustbeacknowledgedasCrowncopyrightandthetitleofthedocumentspecified.Anyenquiriesrelatingtothecopyrightinthisdocumentshouldbesentto:TheLicensingDivisionHMSOStClementsHouse2-16ColegateNorwichNR31BQFax:01603723000E-mail:licensing@cabinet-office.x.gsi.gov.ukManagingriskstothepublic:appraisalguidance1CONTENTSPageForewordManagingriskstothepublic:appraisalguidance3Chapter1Introductionandoverview5Chapter2Governmentintervention9Chapter3Optionsforriskmanagement15Chapter4Appraisingcostsandbenefits21Chapter5Developingandevaluatingimplementationstrategies31AnnexAConcernassessmenttool33AnnexBGovernment'sPrinciplesofmanagingrisktothePublic45AnnexCCBAandQALYapproachescompared47AnnexDGlossary53Bibliography55Managingriskstothepublic:appraisalguidance3FOREWORDMANAGINGRISKSTOTHEPUBLIC:APPRAISALGUIDANCEThisguidanceisdesignedtohelppolicymakersaddresscertainrisksthatthepublicfaces,andalsoitsperceptionsofrisk.Governmenthasaroletoprotectandassurethepublic,whichincludestakingcosteffectiveactiontoreducerisk,andtoprovideaccurateandtimelyinformationaboutrisk.Theapproachcontainedhereattemptstoincorporateandpointtogoodpracticeinthemanagement,communicationandeconomicvaluationofrisk.Thesearestilldevelopingareasofexpertise.Overtime,itishopedthatamorecompletemethodologywillemerge,buildingontheextensiveacademicresearchthatiscurrentlyunderway.TheTreasuryisverygratefulforthesignificantcontributionstothedevelopmentofthisguidancethathavebeenmadeacrossgovernmentandacademia,inparticulartothosewhocontributedtoandcommentedontheconsultationdraft.Oneobjectiveofthisguidanceistoachievegreaterconsistencyandtransparencyingovernmentdecision-making.Itaimstoachievethisbyrecommendinggreateruseofevidencedbasedvaluesofpreventingfatality,andotherharms,andsupportsfurtherstudiestoinformourunderstandingoftheappropriateeconomicvaluestousegivendifferencesincontext.Morewidespreaduseofevidence-basedvalueswouldhelptoachievegreaterconsistencyindecisionmaking,increasing(incertainareas)riskmanagementactivity,andpreventingorcurbingitinareaswherethebenefitsarenotjustifiedbythecosts.Costbenefitanalysis(CBA)isanimportanttoolthatcanprovideanassessmentofhowmuchsocietywantsdevotedtoreducingtheriskoffatalitiesandotherharms,givenitslimitedresourcesandcompetingdemands.BothCBAandcosteffectivenessanalysiscanhelpdecidewhereandhowbesttodeployitsresourcesinreducingriskandpreventingharm.Governmentneedstotakeactionthataddressesrisksinaproportionate,consistentway,basedontheevidenceofwhatismostcosteffective.Thisguidancealsorecommendsthat,alongsidethetechnicalanalysisofoptionsavailabletoreducerisk,decisionmakersshouldtakeexplicitstepstoinvolvethepublic:tounder...