In a world of uncertainties, you seldom have statistics, explains Dr. M. Elisabeth Paté-Cornell, department chair of Management Science and Engineering at Stanford University. Risk analysis examines a broad distribution of outcomes based on scenarios and their probable consequences. From these results, she says a people must decide if they can live with the hypothesized outcomes. If not, we must decide how to best allocate resources for reinforcement of the systems in place to avoid disaster.
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