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Risk Governance: Concept and Application to Institutional Risk Management

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Better Business Regulation in a Risk Society

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Abstract

The chapter addresses the requirements for a risk governance framework that is inspired by the works of the International Risk Governance Council (IRGC). Risk governance is exposed to three major challenges that result from a lack of knowledge and/or competing knowledge claims about the risk problem: complexity, scientific uncertainty, and sociopolitical ambiguity. To deal with these three challenges, the chapter illuminates a risk governance model that augments the classical model of risk analysis (risk assessment, management, communication) by including steps of pre-estimation, interdisciplinary risk estimation, risk characterization and evaluation, risk management, as well as monitoring and control. This new risk governance model also incorporates expert, stakeholder, and public involvement as a core feature in the stage of communication and deliberation.

This manuscript is based on two major documents: IRGC (International Risk Governance Council) (2005) Risk Governance – Towards an Integrative Approach, White Paper no 1, authored by O. Renn with an Annex by P. Graham, IRGC, Geneva, and Renn, O. and Walker, K. (2008) “Lessons Learned: A Re-Assessment of the IRGC Framework on Risk Governance,” in O. Renn and K. Walker (eds): The IRGC Risk Governance Framework: Concepts and Practice, Springer, Heidelberg and New York, pp 331–367

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Author information

Authors and Affiliations

  1. Environmental Sociology and Technology Assessment, University of Stuttgart, Stuttgart, Germany

    Ortwin Renn

  2. Environmental Policy Institute, Memorial University of Newfoundland, Newfoundland, Canada

    Andreas Klinke

Authors
  1. Ortwin Renn
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  2. Andreas Klinke
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Correspondence to Ortwin Renn .

Editor information

Editors and Affiliations

  1. Jouy-en-Josas, 78351, France

    Alberto Alemanno

  2. Amsterdam, 1081 HV, Netherlands

    Frank den Butter

  3. Schoonhoven, 2871 PM, Netherlands

    André Nijsen

  4. Surrey, GU2 7XH, United Kingdom

    Jacopo Torriti

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Renn, O., Klinke, A. (2012). Risk Governance: Concept and Application to Institutional Risk Management. In: Alemanno, A., den Butter, F., Nijsen, A., Torriti, J. (eds) Better Business Regulation in a Risk Society. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-4406-0_2

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