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3. LITERATURE REVIEW<br />

3.1. Uncertainty and Probabilistic Risk<br />

Uncertainty is a reality of life and always has been. The vagaries of natural<br />

events and evils such as plagues, pestilence, earthquakes, floods, droughts, crop failures<br />

and social conflicts have been the source of public and private insecurities throughout<br />

history (Denney, 2005, p. 7). Industrialization in the nineteenth century and subsequent<br />

technological advances in the twentieth century produced additional uncertainties that<br />

were previously incomprehensible to non-industrialized societies, defined as “post<br />

modern risks” (Beck, 1992). These “post-modern risks” that contemporary societies face<br />

include, but are not limited to, instabilities because of international economic<br />

interdependence, threats associated with breaches in communication security, social<br />

destabilization due to regional political upheaval, political aggression based on<br />

technologies, religious terrorism, chromosomal damage from pharmaceuticals, diseases<br />

resulting from agricultural production, and social disequilibrium associated with<br />

advances in communication (Denney, 2005).<br />

Individuals, institutions, and societies have responded to this uncertainty, and the<br />

possibility that one’s actions may have undesirable outcomes, in various ways. They<br />

have attempted to: isolate themselves from global risks, implement private property<br />

rights, set up bureaucratic agencies, legislate statutes, promote the return to fundamental<br />

religious beliefs, establish insurance indemnification procedures, and develop analytical<br />

7

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