RISK MANAGEMENT IN ENVIRONMENT, PRODUCTION AND ECONOMY Edited by Matteo Mario Savino Risk Management in Environment, Production and Economy Edited by Matteo Mario Savino Published by InTech Janeza Trdine 9, 51000 Rijeka, Croatia Copyright © 2011 InTech All chapters are Open Access articles distributed under the Creative Commons Non Commercial Share Alike Attribution 3.0 license, which permits to copy, distribute, transmit, and adapt the work in any medium, so long as the original work is properly cited. After this work has been published by InTech, authors have the right to republish it, in whole or part, in any publication of which they are the author, and to make other personal use of the work. Any republication, referencing or personal use of the work must explicitly identify the original source. Statements and opinions expressed in the chapters are these of the individual contributors and not necessarily those of the editors or publisher. 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Used under license from Shutterstock.com First published September, 2011 Printed in Croatia A free online edition of this book is available at www.intechopen.com Additional hard copies can be obtained from orders@intechweb.org Risk Management in Environment, Production and Economy, Edited by Matteo Mario Savino p. cm. 978-953-307-313-2 free online editions of InTech Books and Journals can be found at www.intechopen.com Contents Preface IX Part 1 Environment 1 Chapter 1 Coastal Risk Management Modes: The Managed Realignment as a Risk Conception More Integrated 3 Hugues Heurtefeux, Paul Sauboua, Provence Lanzellotti and Amandine Bichot Chapter 2 Toward a Hydro-Economic Approach for Risk Assessment and Mitigation Planning of Water Disasters in Semi-Arid Kenya 27 Cush Ngonzo Luwesi, Chris Allan Shisanya and Joy Apiyo Obando Chapter 3 Generation of Added Values Products Supporting Risk Analysis 47 Massimo Musacchio, Malvina Silvestri, Luca Merucci, Stefano Corradini, Claudia Spinetti, Valerio Lombardo, Boris Behncke,Lorenzo Guerrieri, Gabriele Gangale, Fabrizia Buongiorno, Sergio Perelli, Sergio Teggi, Sergio Pugnaghi, Angelo Amodio, Eugenio Sansosti, Simona Zoffoli and Chiara Cardaci Part 2 Production 75 Chapter 4 Food Safety Risk Management 77 Elena Carrasco, Antonio Valero,Fernando Pérez-Rodríguez, Rosa María García-Gimeno and Gonzalo Zurera Chapter 5 Risk Analysis in the Mining Industry 103 Undram Chinbat Chapter 6 A Fuzzy Comprehensive Approach for Risk Identification and Prioritization Simultaneously in EPC Projects 123 R. Tavakkoli-Moghaddam, S.M. Mousavi and H. Hashemi VI Contents Part 3 Economy 147 Chapter 7 A Comprehensive Risk Management Framework for Approaching the Return on Security Investment (ROSI) 149 Elvis Pontes, Adilson E. Guelfi, Anderson A. A. Silva and Sérgio T. Kofuji Chapter 8 Market Risk Management with Stochastic Volatility Models 171 Per Solibakke Preface Risk management is nowadays the way to prevent serious damage or critical consequences from dangerous situations in everyday life. Although, for many years, much has been done in terms of prevention and great efforts are continuously invested into it, the concept of risk as an unforeseen event which can cause danger or a great modification of a previous situation is still an issue to be taken into account. Even if the term “risk” is often negative in its common acceptation, many opportunities can arise from such a situation: not only speculation but, above all, the possibility to be prepared to tackle the events and to use the mind in order to develop new solutions which can convert a possible danger to an unforeseen but positive event. Unforeseen events are very common not only in natural phenomena but also in human activities: volcanoes, coasts and natural environment rather than projects, food safety, mining and construction industry are examples of the possible application fields of risk management analysis. This book presents a structured collection of papers dealing with the subject and stressing the importance of an issue such as risk management. The aim is to present the problem in various fields of application of risk management theories, highlighting the approaches which can be found in literature. The book is organized in three macro parts and their respective chapters referring to three macro areas which can be involved in the risk management analysis. The first part of the book analyzes risk management methodologies with respect to the environment by introducing approaches to prevent volcano disaster, water disaster or coastal degradation through three representative case studies. The second part deals with the production field and introduces peculiarities in project management process, food chain and some sectors of industry through the use of new techniques combined with risk analysis. X Preface The last part discusses the application of risk management in economic sector to face the dynamicity and unforeseen events which can arise and, thus, better understand and tackle the actual global economy. Prof. Matteo Mario Savino, Dept. of Engineering, University of Sannio, Italy [...]... assessment Hindsight management objective is rather to move back present stakes on the coast towards the hinterland That corresponds to an integrated management policy 8 Risk Management in Environment, Production and Economy Another type of term is used In Canada retreat is more used to define the shunning of the risk: retreat or shunning consists in avoiding risks so as to eliminate direct impacts Instead... consideration of these risks into land management plans The same consideration of social, economic and environmental aspects is taken into account in area of flood management in Belgium In that way, Belgium is a partner with United Kingdom of the project European Spatial Planning: Adapting to Climate Events Managed realignment is used in United States too It is defined in the same way as in United Kingdom but... Part 1 Environment 1 Coastal Risk Management Modes: The Managed Realignment as a Risk Conception More Integrated Hugues Heurtefeux, Paul Sauboua, Provence Lanzellotti and Amandine Bichot EID Méditerranée, Montpellier, France 1 Introduction Land managers assess the risk by evaluating the probability of hazard occurring and likely damage that would occur to economic... especially of coastal management conceptions into public policies, induce an important diversity of M.R cases Thus in a context of thoughts 4 Risk Management in Environment, Production and Economy about management modes to use into coastal areas, it seems necessary to analyse this emerging notion This publication will permit to study in a first part (i) the M.R notion, and the objectives and actions to which... coasts and rivers is defined as a process of establishing a new flood defence line for river 6 Risk Management in Environment, Production and Economy corridors or coastlines often set back from the existing position, with the aim of improving the long-term sustainability of the defence, or contributing to other aims such as habitat creation (DEFRA, 2005) For Laure Ledoux (Ledoux, 2005), this definition... 2007) -19 92- -19 99- Fig 2 Case of "do nothing" approach in Happisburgh (UK) (Coastal Concern Action Group) Coastal Risk Management Modes: The Managed Realignment as a Risks Conception More Integrated 7 Fig 3 Representation of strategic realignment (Rupp and Nicholls, 2002) Since 2005 the management of risks in United Kingdom is concerned by a new strategy called “Making space for water” The main goal... of a breach in existing structures (Dickie, 2 010 ) (cf figure 3) It permits to water to flood until the next natural relief or the new defence line constructed more into the hinterland In this case, M.R is more corresponding to a process of depolderisation Indeed Western Europe’s depolderisation was launched in the 19 80’s A lot of different cases exist in United Kingdom where precisely management policies... realignement use in the french context 1. 2 .1 To the European scale Managed realignment is discussed by European Commission in order to respond to increasing coastal risks and climate change (European Commission, 2007) Coastal development and management have to be tackle in a strategic, coherent and integrated way A guide about European Union action in view of climate change has been published in 2008 (European... coast to the hinterland (integrated management policy) To create a new defence line backwards facing the sea to restore natural areas and a buffer space between sea and stakes (depolderization: loss of land reclaimed from the sea) To avoid the addition of new stakes at existing ones into coastal areas (progressive abandonment) Fig 4 Strategies diversity linked to managed realignment 1. 2 Overviewes... definition of a new defence line, on the coast line but into the estuaries and bank rivers too So it is in question of a voluntary approach and pro-active, in opposition to “inactive realignment” limited to not look after existing defences M.R objectives are numerous It permits so a diminution of defences costs by the reduction of structures dimensions, and the increase of defences effectiveness and . RISK MANAGEMENT IN ENVIRONMENT, PRODUCTION AND ECONOMY Edited by Matteo Mario Savino Risk Management in Environment, Production and Economy Edited. be obtained from orders@intechweb.org Risk Management in Environment, Production and Economy, Edited by Matteo Mario Savino p. cm. 978-953-307- 313 -2 free online editions of InTech. an integrated management policy. Risk Management in Environment, Production and Economy 8 Another type of term is used. In Canada retreat is more used to define the shunning of the risk: