Abstract of Plenary Paper

The 1996 Annual Meeting of the Society for Risk Analysis-Europe

Determinants and Consequences of Perceived Risk. Lennart Sjöberg, Center for Risk Research, Stockholm School of Economics, Sweden

Perceived risk is often assumed to be a central factor in social and political dilemmas. It is related to the "acceptance" of technology, and to lifestyle risks associated with, e.g., smoking and alcohol consumption. Consequently, perceived risk is an important concept and has been subjected to intense research attention during the preceding decades. Attempts to account for perceived risk have been presented as the Psychometric Model by the Oregon group and as Cultural Theory of risk perception by Douglas and Wildavsky. These approaches are briefly reviewed, noting that they account for no more than 20 percent (Psychometric Model) or 5-10 percent (Cultural Theory) of the variance of perceived risk across individuals. The widespread credibility that these approaches enjoy seems to be due to statistical illusions. The psychometric model is often combined with the trust concept, but current data on trust and perceived risk in Sweden suggest that the importance of that variable may be culturally contingent - previous data being mostly from North America and of doubtful European relevance. An alternative, bringing in attitudes and specific risk factors accounts for more than 60 percent of the variance. As for consequences, it is demonstrated that demand for risk reduction is not well explained by perceived risk, nor is attitude to insurance and prevention. Perceived risk is mainly related to perceived probability of future harm, while demand for risk mitigation and related concepts are better explained by the seriousness of the consequences of a harmful event, or injury. A final comment is connected with worry and anxiety; these more emotional types of reactions are but weakly related to perceived risk, yet often used as synonyms.