Risk Acceptance Criteria and/or Decision optimization

Acceptance criteria applied in practical risk analysis are recapitulated including the concept of rist profile. Modelling of risk profiles is illustrated on the basis of compound Poisson process models. The current practice of authoritative acceptance criteria formulation is discussed from a decision theoretical point of view.

It is argued that the phenomenon of risk aversion rather than being of concern to the authority should be of concern to the owner. Finally it is discussed whether there is an ethical problem when formally capitalising human lives with a positive interest rate. Keywords: Risk acceptance, Risk profile, Compound Poisson model for risk profile, Capitalization of human life, Risk aversion.