Setting Multi-National Risk Tolerance Criteria

Companies that operate in multiple locations around the world face the challenge of developing consistent risk tolerance criteria across their operations in various locations. However, the views of the people in each location on the tolerability of the risks can vary significantly from one location to another. Indeed, the actual risks that people are exposed to and currently tolerate can vary significantly depending on local factors. The challenges in developing consistent criteria for such multiple locations are described and addressed in this paper.

Regulators in several countries have developed numerical risk tolerance criteria and require that facilities meet them. The procedures used in the development of those criteria are described and form the basis for a procedure that is described in this paper for setting consistent criteria across national boundaries.