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the IRGC
Risk Governance
Framework
Many current risk issues are complex, uncertain, or even ambiguous. In most cases,
the potential benets and risks interconnect. IRGC facilitates a better understanding
of risks and their scientic, political, social, and economic contexts. It also provides
support on how to manage them in the presence of knowledge gaps, time constraints
and policy trade-offs. IRGC believes that improvements in risk governance are
essential to taking optimal risk-related decisions and to maximising public trust in
risk management processes, structures and decisions.
Building on this work, IRGCs 2009 Report on Risk Governance Deficits: An analysis
and illustration of the most common deficits in risk governance focused on the
sources of governance deficits and their constructive assessment and management.
This Introduction to the IRGC risk governance framework summarises the main
points of the White Paper, identifies potential decits in the risk governance process
and illustrates their manifestation with recent examples.
More information on IRGC and the IRGCs Risk Governance Framework may be
obtained from www.irgc.org.
1
IRGC White Paper No1 Risk
Governance Towards an Integrative
Approach, IRGC, Geneva, 2005.
ISBN 978-2-9700772-2-0
international risk governance council An introduction to the IRGC Risk Governance Framework
Contents
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1. Pre-assessment 8
1.1 Framing and early warning 8
1.2 The importance of context 10
2. Appraisal 12
2.1 Assessing the risk 12
2.2 Categorising the knowledge 14
3. Evaluation 16
4. Management 18
4.1. Managing the risk 18
4.2 Involving stakeholders 20
5. Communication 22
Conclusion 23
References 24
Appendix I 25
Appendix II 26
An introduction to the IRGC Risk Governance Framework international risk governance council
I From ordinary to systemic risks:
the need for improved governance
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Systemic risks are embedded in the larger context of societal, nancial and
economic consequences and threaten the functionality of a service or a need that
is essential for the economy and/or society. Such risks are not conned to national
borders; they cannot be managed through the actions of a single sector; they
require a comprehensive and systemic governance approach, i.e. an approach
that acknowledges the interdependencies of the variables and attempts to correct
the drivers rather than the symptoms. The governance of systemic risks requires
cohesion between countries and the inclusion within the process of governments,
industry, academia and civil society.
Risk taking is crucial for technological and social change. It is a permanent and
important part of life and the willingness and capacity to take and accept risk is
crucial for achieving economic development and social welfare, for example by
introducing new technologies. Many risks, and in particular those arising from
emerging technologies, are accompanied by potential benets and opportunities.
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n Differing approaches and protocols to assessing and managing the same risk
n Decisions that take inappropriate account of public perception and the quest
for stakeholder involvement
1. Pre-assessment
2. Appraisal
3. Evaluation
4. Management
5. Communication
These interlinked phases are summarised in the following pages. Together they
provide a means to gain a thorough understanding of a risk and to develop adequate
and appropriate options for dealing with it.
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II Handling risks
using the IRGC framework
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Policy makers are often required to make decisions and take actions under
considerable time pressure, with incomplete information and often faced by conicting
advice and public pressure. Even in situations of knowledge decit and high
uncertainty, decisions must be made and action is often needed.
The IRGCs framework can assist in giving guidance, even in situations of high
complexity, uncertainty or ambiguity. It can help detect current or potential
decits within the risk governance process, and so enable decision makers to act
on the basis of known facts, transparent assumptions, and broad societal values
and interests. The framework can also encourage people to raise the relevant
questions, the answers to which will help reduce uncertainty and handle political
and cultural ambiguities. The framework is designed to increase the capacity to deal
with the unanticipated consequences, the unknown impacts and social conflicts
over trade-offs.
Risk handling is not just about risk management. It starts at the much earlier stage
of risk pre-assessment, in which the essential perspectives of the problem,
particularly how the risk is framed by different stakeholders and whether or not
there are any applicable legal or other existing rules or processes, are identied
early and broadly.
IRGC also emphasises the crucial role of communication and public involvement.
This includes not only informing people of a risk or of a risk management decision,
but also establishing a two-way dialogue needed at all stages of the risk handling
process including communication between those responsible for taking risk-related
decisions and those responsible for providing the knowledge on which the decisions
are based. Excellent communication is particularly important for the involvement
of stakeholders in participative risk-related decision making and conict resolution
and for ensuring that they can make informed choices about the risk, balancing
factual knowledge about it with their own interests, concerns, beliefs and resources.
It is also necessary to accept and account for the variety of risk cultures and
regulatory styles around the world, as these will require different methods for,
particularly, management and communication. Also, as risk cultures vary (for example,
over time and according to the level of economic development), timing is a key
IRGCs policy brief on
Nanotechnology Risk Governance
criterion. What is possible now in one environment may not be possible elsewhere.
can be downloaded from www.irgc.org What is not feasible today may be feasible tomorrow.
international risk governance council An introduction to the IRGC Risk Governance Framework
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Cutting across each of these elements is the role played by stakeholders in analysing
the risk and in sharing the decisions about it. For example, the interests and intentions
behind the introduction of genetically modied crops were and remain very different
across countries. This reects both differences in risk cultures and the diverse roles
and values of various stakeholders.
Classifying risks
Risks differ in a number of ways. One approach to understanding the differences is to consider a number of
dimensions which typically should inuence the risk governance process.
n Degree of novelty is the risk emerging, re-emerging, increasing in importance, current (topical) or
institutionalised (already subject to management decisions)?
n Range: does the risk impact on human health and safety, the environment, capital assets, trade, etc?
n Delay: is there a long timespan between the trigger of the risk and its effects (latency)?
n For the risks introduced by developments in science and technology: is the change incremental or
breakthrough?
n Does it meet or violate other important societal values, business prospects, equity concerns, security
requirements, or trade agreements?
n Form of public-private partnerships and the degree of governmental regulation versus self-regulation.
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III The IRGC risk governance framework:
Description
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A simplified representation
of the IRGC risk governance
framework
The comprehensive representation can
be found in www.irgc.org/publications
1. Pre-assessment
1.1 Framing and early warning
IRGCs approach begins with risk pre-assessment: early warning and framing
the risk in order to provide a structured definition of the problem and how it may
be handled.
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Organisational Capacity
(assets; skills; capabilities)
Actor Network
(politicians; regulators; industry/
business; NGOs; media;
public at large)
Social Climate
(trust in regulatory institutions;
perceived authority of science;
civil society involvement; risk culture)
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Many governance deficits originate from the lack of an appropriate legal or regulatory framework. Sometimes
there is no appropriate structure or process. Alternatively, some regulatory structures overlap and compete with
others, creating conflicts which complicate how risks are handled.
This is primarily due to the enormous diversity of energy needs and production capacity,
agricultural and forestry practices, climate change impact, technological capacities, and
economic and social conditions. It is also due to differences in priorities and objectives of
the organisations which comprise the actor network. For example, policies may prioritise
different objectives, such as reducing carbon emissions, enhancing national energy security
and independence, or catalysing rural economic development.
Within society at large, differences in cultures and values mean that, often independently of
scientic data, some social groups may view bioenergy as a threat to the security of food
supplies whilst others view bioenergy as a potential source of new income. Although the
same principles and objectives of risk governance will be needed to develop and implement
policies for bioenergy, the context will mean that the policies themselves may vary widely.
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2. Appraisal
2.1 Assessing the risk
Risk appraisal develops and synthesises the knowledge base for the decision on
whether or not a risk should be taken and, if so, what options are available for
avoiding, mitigating, reducing or handling risks. Risk appraisal comprises both
a scientic risk assessment a conventional assessment of the risks factual,
physical and measurable characteristics, including the probability of occurrence (or
Copyrights: Andrea E. Janda
a probability distribution over a range of negative consequences) and a concern
assessment a systematic analysis of the associations and perceived consequences
(benets and risks) that stakeholders, individuals, groups or different cultures may
associate with a hazard or a cause of hazard. The IRGC framework distinguishes
between a risk agent, i.e. the hazard that has the potential to cause harm (for
example, a poisonous chemical or a knife) and the risk absorbing system, i.e. the
target that could be exposed to the risk agent. In principle, risk agents are confined
to energy, substance and information (all of which can cause harm). How much harm
they are able to cause depends on the exposure (how many targets are affected?)
and the vulnerability of the risk-absorbing system (how much stress can the system
tolerate?). Risks are hence a composition of the potential to cause harm by the risk
agent, the physical possibilities of being exposed to this agent and the vulnerability
of the risk-absorbing system. Furthermore, risks express the relative likelihood that
such harm is experienced.
The concern assessment is a key feature of the IRGC framework, ensuring that
decision makers account for how the risk is viewed when values and emotions come
into play. Human behaviour with respect to risk is governed by the perceptions and
associations of those who handle the risks. Through risk behaviour, physical risks
and risk perceptions become intertwined. It is therefore essential to understand
perceptions and concerns, as they not only determine the social and cultural
ambiguity about a risk issue but also influence the physical risk level.
Both activities, the risk and the concern assessments, are scientific approaches
to understand and characterise the risks and concerns. They require state-of-the-
art methodologies in physical sciences (such as toxicology, safety engineering,
epidemiology, system sciences) and well as in social sciences (such as sociology,
psychology, political sciences, anthropological behavioural sciences).
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BOX 4: Two episodes of fisheries depletion in the North Sea in 1975 and 1995
A positive example of how a rapid and complete risk assessment can lead to improved risk
governance is the case of the North Sea herring fishery. This fishery suffered a severe collapse
in 1975-6 following failures by regulators to act on early warning signs that fish stocks were
unhealthily low. The fishery was therefore closed. Upon re-opening of the herring fishery in 1981,
efforts were made to improve the management of fish stocks and, in 1995, when early warning
signs once again showed that fish stocks were becoming dangerously low, quick and drastic
action was taken to avoid another collapse. By 2003, the stock had recovered without requiring
even temporary closures of the fishery. An important reason for the success was the support from
the fishing industry. Despite short-term losses, it had kept the memory of the earlier collapse.
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n Simple risk problems can be managed using a routine-based strategy, such as introducing a law or regulation.
n Complex risks can be addressed on the basis of accessing and acting on the best available scientic expertise,
aiming for a risk-informed and robustness-focused strategy. Robustness refers to the degree of reliability of the risk-
reduction measures to withstand threatening events or processes that have not been fully understood or anticipated.
n Uncertain risks are better managed using precaution-based and resilience-focused strategies, with the
intention being to apply a precautionary approach to ensure the reversibility of critical decisions and to increase
a systems coping capacity to the point where it can withstand surprises.
n Finally, for ambiguous risk problems the appropriate approach comprises a discourse-based strategy that
seeks to create tolerance and mutual understanding of conicting views and values with a view to eventually
reconciling them.
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3. Evaluation
IRGCs inclusion of this element is deliberately intended to ensure that the evidence
based on the scientific assessment of risks and concerns is combined with a
thorough understanding of other factors that matter in the evaluation of risks and
benefits representing wider societal values, economic interests and political
considerations. Evaluation provides for a balanced judgment of whether or not a
risk is acceptable (risk reduction is considered unnecessary), tolerable (to be
pursued because of its benets and if subject to appropriate risk reduction measures)
or, in some cases, intolerable and, if so, to be avoided.
Risk-reduction
n What are the societal, economic and environmental benets and risks?
n What are the societal values and norms for making judgments about tolerability
and acceptability?
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n Indecision: when there is indecision or lack of responsiveness, whether voluntary (act of authority) or involuntary
(overly inclusive process with stakeholders leads to inertia)
n Transparency: when trade-offs are not made explicit and hidden agendas seem to determine the outcome of
the evaluation process
n Overlooking values failing to fully consider social needs, environmental impacts, cost-benet analyses and
risk-benet balances
One is that no evidence of proof is not evidence of no proof. In the early stages of the
epidemic, the public was advised that there was no scientic evidence that BSE can be
transmitted to humans; such advice did not make clear that there was no evidence either
way. Equally, even after government acceptance of the link, advertising by the beef industry
stated: There is no proof of a link between BSE and CJD.
Another lesson is the impact of delay. The rst report of a cow behaving unusually was
in December 1984. It was 9 months before samples from the animal were tested by the
UK Central Veterinary Laboratory; BSE was diagnosed a week later. It took another 10
months for the existence of the new disease to be accepted, 7 months to inform Agriculture
ministers and a further 9 months to inform the UK Department of Health. It took a full 9 years
to extend a ban on using meat and bone meal to cover all farm animals.
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4. Management
4.1 Managing the risk
All tolerable risks will need appropriate and adequate risk management. Risk
management involves the design and implementation of the actions and
remedies required to avoid, reduce, transfer or retain the risks. Based on the
development of a range of options and a consideration of the most appropriate of
them, risk management decisions are taken and put into practice. Risk management
includes the generation, assessment, evaluation and selection of appropriate risk-
reduction options as well as implementing the selected measures, monitoring their
effectiveness and reviewing the decision if necessary.
n Who is, or should be, responsible for decisions within the context of the risk
and its management? Who needs to be included in the process of designing
and evaluating interventions?
n What are the likely impacts of particular risk-reduction options? How do these
impacts compare with the gains in risk reduction?
n What measures are needed to ensure effectiveness in the long term (compliance,
enforcement, monitoring, adaptive management plans, etc.)?
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n Short-term expediency: authority makes a decision on a knee-jerk basis to give the impression of management
n Accountability: decision makers are isolated from the impact of their decision
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IRGC broadens the concept of risk assessment by adding the parallel scientific
activity of concern assessment the consideration of individual, organisational and
societal perceptions of, and concerns about the consequences of risk. Both are
relevant inputs to risk evaluation and risk management.
Few risk governance models currently include procedures or guidance for how,
or when, to involve the concerns of stakeholders particularly the general public.
Whilst simple risks may require little consultation on the nature of the risk itself
because of their routine nature (although consultation may be needed on the choice of
the most effective method of control), highly complex and uncertain risks may benet
from wider dialogue amongst, respectively, a broader base of people with expert
knowledge or all directly affected stakeholders. Risks with high levels of ambiguity
are those for which wider stakeholder consultation is recommended, not least as a
means of trying to reconcile the various framings that different stakeholders may
have when interpreting a risk or evaluating the options for its management.
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Ignoring the composition of complexity, uncertainty and ambiguity and designing a process that is either too
inclusive (for rather trivial risks) or not inclusive enough (for highly ambiguous risks).
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5. Communication
Communication is of the utmost importance. First, it enables risk assessors and risk
managers to develop a common understanding of their tasks and responsibilities (internal
communication) and second, it empowers stakeholders and civil society to understand
the risk and the rationale for risk management (external communication). It also allows
them to recognise their role in the risk governance process and, by being a deliberate
two-way process, gives them a voice in it. Once the risk management decision is made,
communication should explain the rationale for the decision and allow people to make
informed choices about the risk and its management, including their own responsibilities.
Effective communication is the key to creating trust in risk management.
Questions:
n What are the demands, needs and purposes for information and communication?
n How can communication be facilitated between and among regulators, risk
assessors and other in-house experts (internal communication)?
n How can communication be facilitated between risk managers, stakeholders,
the media and the affected public (external communication) as well as between
assessors and other in-house experts (internal communication)?
n How is information interpreted by those who receive it?
n What is known about the risk and the hazard, by whom, and how can it be
conveyed to the interested stakeholders and the public?
n How can communication be organised so that two-way information is effective,
enlightening and timely?
n Are the concerns of stakeholders and the public being clearly articulated and
are decision makers listening?
n What is the degree of condence in the risk managers responsible for generating
or disseminating information, and for organising a dialogue?
n What has been and can be the role of the media?
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Conclusion
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The IRGC framework is comprehensive and exible. It offers guidelines for identifying,
understanding and addressing the essential elements of sound and inclusive risk
governance. It can help risk governance institutions to structure their tasks. It can
assist in diagnosing decits in the risk governance process and provide suggestions
for how to correct them. Internationally, the framework can add to efforts to harmonise
risk governance approaches and nd common denominators for risk handling in a
globalised and plural world.
The framework is not intended as a recipe or a checklist that can guarantee all
relevant aspects are considered when analysing a risk and its governance process
and structures. However, by building into conventional risk analysis and management
such soft issues as societal values, concerns and perceptions of risk and by
looking into the interactions between the various actors involved in the process,
the IRGC risk governance framework can contribute to the development of more
inclusive and effective risk governance strategies.
Notes
Readers of this document who wish to learn more about the basis for the development
of the IRGCs risk governance framework and read a detailed description of the
framework are invited to download a copy of the IRGC White Paper No.1 from our
website (www.irgc.org).
An introduction to the IRGC Risk Governance Framework international risk governance council
References
P 24
Renn O. and Schweizer, P. (2009): Inclusive Swiss State Secretariat for Education
risk governance: Concepts and application to and Research
environmental policy making, Environmental EPFL, Ecole Polytechnique Fdrale
Policy and Governance 19, no. 3: 174-85. de Lausanne
Renn O.; Klinke, A. and van Asselt, M.B.A. Swiss Reinsurance Company
(2011): Coping with complexity, uncertainty
Oliver Wyman
and ambiguity in risk governance, AMBIO 1,
no. 1: 67-81. Center for Strategic Futures (Singa-
pore)
van Asselt, M.B.A. and Renn, O. (2011): Risk
governance, Risk Research. 1, no. 4: 431- Portuguese Science and Technology
449 Foundation
international risk governance council An introduction to the IRGC Risk Governance Framework
APPENDIX 1
P 25
The original IRGC risk governance model has recently been modified by Klinke and Renn1.
In particular the two authors added a dynamic, adaptive component to the linear model
that had been criticised as too static to capture the iterative and relational nature of risk
governance2. The adaptive and integrative quality of the process requires the capacity to
learn from previous and similar risk-handling experiences to cope with current risk problems
and apply these lessons to cope with future potential risk problems and surprises. The Figure
below illustrates the dynamic risk governance process. The revised IRGC risk governance
model addresses four core functions:
n Enhancing the resilience of the risk governance system by increasing the capacity to
retain the basic functions and structures of risk handling and to absorb disturbance
in the risk handling components.
The different phases of the risk governance model are briefly explained below. The titles
are taken from the original risk governance model; they correspond one-to-one to the new
variant by Klinke and Renn.
1
Klinke, A. and O. Renn (2012): Adaptive and integrative governance on risk and uncertainty, Journal
of Risk Research 15, no. 3: 273-292.
2
Boholm, A. and H. Corvellec (2011): A relational theory of risk, Journal of Risk Research 14, no.1-2:
175-190.
An introduction to the IRGC Risk Governance Framework international risk governance council
APPENDIX 2
P 26
The results of SAFE FOODS show that some aspects of European food safety regulation are in need of further improvement, namely
the complex relationship between Risk Assessment and Risk Management; the application of precaution in the face of scientific
uncertainty; and the opening up of the governance process through public participation. The General Framework for the Precautionary
and Inclusive Governance of Food Safety seeks to implement the following improvements in food safety governance:
1. Introducing more transparency into the conduct of food safety governance procedures;
2. Achieving better involvement of stakeholder organisations and the wider public;
3. Ensuring effectiveness and flexibility of governance procedures;
4. Embedding the innovative procedures of framing, screening and evaluation as far as possible within the existing governance structures;
5. Providing procedures for handling threats which involve scientific uncertainty and/or socio-political uncertainty (Vos and Wendler 2009: 85).
In 2006 the Health Council of the Netherlands therefore published the advisory report Health Significance of Nanotechnology, which
explores governance issues and potential adverse effects of nanotechnology. In its advisory report the committee adopts the description
international risk governance council An introduction to the IRGC Risk Governance Framework
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used by the IRGC: The IRGC recently presented a general framework for risk governance. It corresponds closely with our national
ideas on dealing with risks and the Committee believes it can also be used for dealing with the risks of nanotechnologies. (Health
Council of the Netherlands 2006: 82).
The Health Council of the Netherlands states that: Nanotechnologies are rather a collection of extremely varied technologies and
applications with very little relationship between each other and which often have nothing more in common than the scale at which the
material is studied and manipulated, and the unusual properties that the material can display at that scale. Moreover, nanotechnologies
are at widely varying stages. They are also largely enabling technologies, which aid progress in technological developments in a wide
variety of fields but thereby also strengthen the associated problems they involve. To achieve effective risk governance, it is therefore
important not to treat nanotechnologies as a single group but as individual (types of) applications, each with its own specific risks.
(Health Council of the Netherlands 2006: 84).
The IRGC Risk Governance Framework helps to tackle these governance issues. In particular, the differentiation between generic
challenges for Risk Assessment complexity, uncertainty and ambiguity helps to distinguish specific aspects of individual types of
nanotechnology applications. The advisory report states that IRGCs proposed categorisation of risk problems can be used for previously
identified problems that arise from (or are reinforced by) nanotechnology applications (Health Council of the Netherlands 2006: 86).
Other applications:
The IRGC risk framework has been discussed and partially applied in many other institutions and organisations. Most prominent is its
application of the framework for strategic risk management of the US Joint Chiefs of Staff (Rouse 2010). The model has been used
for major military operations and has, according to the source, improved the risk management process considerably. Similar reports
have been made by the German Occupational Health and Safety Committee (Bender 2008), the International Occupational Safety
Association (Radandt et al. 2008), the UK Treasury (UK Treasury 2005), the US-EPA (2009), and several private organisations. A Google
scholar search for IRGC framework in 2012 produced a total of 1790 academic publications in which the IRGC framework has been
used for characterising, assessing or managing risks.
References Health Council of the Netherlands (2006): Rouse, J. (2011): The Chairman of the Joint
Health Significance of Nanotechnologies, The Chiefs of Staff Risk Assessment System: In-
Bender, H.F. (2008): Ergebnisse der Projekt- Hague: Health Council of the Netherlands; corporation of the International Risk Gover-
gruppe Risikoakzeptanz des AGS, Gefahrst- publication no. 2006/06E. nance Council Framework, Paper at the An-
offe- Reinhaltung der Luft, 68, (7/8): 287-288. nual Meeting of the Society for Risk Analysis
HM Treasury (2005): Managing Risks to the in Salt Lake City, December 6, Washington,
Dreyer, M. and Renn, O. (eds.) (2009a): Food Public: Appraisal Guidance, London: www.hm- D.C.: Arete Associates.
Safety Governance: Integrating Science, Pre- treasury.gov.uk/media/0/B/Managing_risks_
caution and Public Involvement, Heidelberg to_the_public.pdf; access: February 2011. UK-Treasury Department (2005): Managing
and New York: Springer. Risks to the Public: Appraisal Guidance,
HSE, Health and Safety Executive (2001): Draft for Consultation, HM Treasury Press,
Dreyer, M. and Renn, O. (2009b): Introduc- Reducing Risk Protecting People, London: London, October, www.hm-treasury.gov.uk,
tion, in M. Dreyer and O. Renn (eds.): Food Health and Safety Executive. accessed on 11 February, 2011.
Safety Governance. Integrating Science, Pre-
caution and Public Involvement, (Heidelberg Radandt, S.; Rantanen, J. and Renn, O. US-Environmental Protection Agency
and New York: Springer, pp. 3-10. (2008): Governance of Occupational Safety (2009): Potential Nano-enabled Environ-
and Health and Environmental Risks in H.-J. mental Applications for Radionuclides. EPA-
Ely, A.; Stirling, A.; Dreyer, M.; Renn, O.; Vos, Bischoff, H.-J. (ed.): Risks in Modern Society, 402-R-06-002, Washington: EPA.
E.; Wendler, F. (2009): The Need for Change, Springer. Heidelberg und Berlin, pp. 127-258.
in M. Dreyer and O. Renn (eds.): Food Safety Vos, E. and Wendler, F. (2009): Legal and
Governance: Integrating Science, Precaution Roco, M.; Renn, O. and Jger, A. (2008): Nan- Institutional Aspects of the General Frame-
and Public Involvement, Heidelberg and New otechnology Risk Governance in O. Renn and work in M. Dreyer and O. Renn (eds.): Food
York: Springer, pp.11-27. K. Walker (eds.) (2008): Global Risk Gover- Safety Governance. Integrating Science, Pre-
nance. Concepts and Practice Using the IRGC caution and Public Involvement, Heidelberg
Framework, Dordrecht: Springer, pp. 301-327. and New York: Springer, pp. 83-109.
An introduction to the IRGC Risk Governance Framework international risk governance council
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