Social and economic criteria of acceptable risk

A simple normative theory is proposed for the responsible management of risks to the public. A ‘lifesaving’ alternative, if it is truly to save lives, should return to the community more years of life expectancy in good health than the years of work consumed to pay for its cost. This common-sense time principle of risk management provides a criterion for acceptable risk that is applicable in connection with cost-utility analysis. The principle is a benchmark, providing a unified rationale for the assessment of risks in health care and technology. Integration of acceptable risk criteria with criteria for national performance can be achieved via applicable compound social indices such as the Life Quality Index or the Human Development Index.