Status of risk-benefit analysis

The benefits and deficiencies of cost benefit analysis are reviewed. It is pointed out that, if decision making involving risks and benefits is to improve, more attention must be paid to the clear presentation of the assumptions, values, and results. Reports need to present concise summaries which convey the uncertainties and limitations of the analysis in addition to the matrix of costs, risks, and benefits. As the field of risk-benefit analysis advances the estimation of risks and benefits will become more precise and implicit valuations will be made more explicit. Corresponding improvements must also be made to enhance communications between the risk-benefit analyst and the accountable decision maker.