Integrating a Top-Down and a Bottom-Up Approach: Formal and Informal Risk Handling Strategies in a Utility Company

Mascini, P. & Bacharias, Y. (2012). Integrating a Top-Down and a Bottom-Up Approach: Formal and Informal Risk Handling Strategies in a Utility Company. Risk Analysis, 32 (9), 1547-1560.

35 Pages Posted: 1 Feb 2015

See all articles by Peter Mascini

Peter Mascini

Erasmus University Rotterdam (EUR) - Erasmus School of Law; Erasmus University Rotterdam (EUR) - Faculty of Social Sciences

Yannis Bacharias

Erasmus University Rotterdam (EUR) - Faculty of Social Sciences

Date Written: December 31, 2012

Abstract

In this study we bring together a top-down and a bottom-up approach of risk handling. We do so by conceptualizing and qualitatively and quantitatively measuring formal and informal risk handling strategies in a Dutch utility company. We conceive of formal risk handling as regulating, training and educating safety and enforcing rule compliance, while we distinguish three different informal risk handling strategies: discretionary specialization, tacit knowledge and taking personal responsibility. We show that the formal risk handling strategy and the three informal risk handling strategies can be measured separately. Hence, we have validated the measurement of all four strategies derived from two different risk handling approaches. Moreover, we have demonstrated that the perceived use of the four strategies has different effects on unsafe behavior: formal risk handling and tacit knowledge decrease it, discretion increases it while taking personal responsibility has no effect on unsafe behavior.

Keywords: Bottom-up and top-down implementation; discretion; formal and informal risk handling strategies; personal responsibility; tacit knowledge

JEL Classification: L50, M14

Suggested Citation

Mascini, Peter and Bacharias, Yannis, Integrating a Top-Down and a Bottom-Up Approach: Formal and Informal Risk Handling Strategies in a Utility Company (December 31, 2012). Mascini, P. & Bacharias, Y. (2012). Integrating a Top-Down and a Bottom-Up Approach: Formal and Informal Risk Handling Strategies in a Utility Company. Risk Analysis, 32 (9), 1547-1560. , Available at SSRN: https://ssrn.com/abstract=2558482

Peter Mascini (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Law ( email )

Office: Sanders building, L7-23
3000 DR Rotterdam, 3000 DR
Netherlands
0031 622498090 (Phone)

HOME PAGE: http://https://www.eur.nl/people/peter-mascini/

Erasmus University Rotterdam (EUR) - Faculty of Social Sciences ( email )

Mandeville building, T7-18
3000 DR Rotterdam
Netherlands
0031622498090 (Phone)

HOME PAGE: http://https://www.eur.nl/people/peter-mascini/

Yannis Bacharias

Erasmus University Rotterdam (EUR) - Faculty of Social Sciences ( email )

Burgemeester Oudlaan 50
Rotterdam, 3062
Netherlands

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