# principles of risk analysis decision making under uncertainty

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## Principles Of Risk Analysis

Author : Charles Yoe
ISBN : 9781439857502
Genre : Technology & Engineering
File Size : 86. 80 MB
Format : PDF, Docs

## Primer On Risk Analysis

Author : Charles Yoe
ISBN : 9781439857649
Genre : Technology & Engineering
File Size : 44. 57 MB
Format : PDF, ePub

## Project Valuation And Decision Making Under Risk And Uncertainty Applying Decision Tree Analysis And Monte Carlo Simulation

Author : Donald Dibra
ISBN : 9783734755439
File Size : 62. 11 MB
Format : PDF, Kindle

This work presents the application of the Monte Carlo Simulation method and the Decision Tree Analysis approach when dealing with the economic valuation of projects which are subjected to risks and uncertainties. The Net Present Value of a project is usually used as an investment decision parameter. Using deterministic models to calculate a project’s Net Present Value neglects the risky and uncertain nature of real life projects and consequently leads to useless valuation results. Realistic valuation models need to use probability density distributions for the input parameters and certain probabilities for the occurrence of specific events during the life time of a project in combination with the Monte Carlo Simulation method and the Decision Tree Analysis approach. After a short introduction a brief explanation of the traditional project valuation methods is given. The main focus of this work lies in using the Net Present Value method as a basic valuation tool in conjunction with the Monte Carlo Simulation technique and the Decision Tree Analysis approach to form a comprehensive method for project valuation under risk and uncertainty. The extensive project valuation methodology introduced is applied on two fictional projects, one from the pharmaceutical sector and one from the oil and gas exploration and production industry. Both industries deal with high risks, high uncertainties and high costs, but also high rewards. The example from the pharmaceutical industry illustrates very well how the application of the Monte Carlo Simulation and Decision Tree Analysis method, results in a well-diversified portfolio of new drugs with the highest reward at minimum possible risk. Applying the presented probabilistic project valuation approach on the oil exploration and production project shows how to reduce the risk of losing big.

## Foundations Of Risk Analysis

Author : Terje Aven
ISBN : 9781119945789
Genre : Mathematics
File Size : 62. 65 MB
Format : PDF, ePub, Mobi

Foundations of Risk Analysis presents the issues core to risk analysis – understanding what risk means, expressing risk, building risk models, addressing uncertainty, and applying probability models to real problems. The author provides the readers with the knowledge and basic thinking they require to successfully manage risk and uncertainty to support decision making. This updated edition reflects recent developments on risk and uncertainty concepts, representations and treatment. New material in Foundations of Risk Analysis includes: An up to date presentation of how to understand, define and describe risk based on research carried out in recent years. A new definition of the concept of vulnerability consistent with the understanding of risk. Reflections on the need for seeing beyond probabilities to measure/describe uncertainties. A presentation and discussion of a method for assessing the importance of assumptions (uncertainty factors) in the background knowledge that the subjective probabilities are based on A brief introduction to approaches that produce interval (imprecise) probabilities instead of exact probabilities. In addition the new version provides a number of other improvements, for example, concerning the use of cost-benefit analyses and the As Low As Reasonably Practicable (ALARP) principle. Foundations of Risk Analysis provides a framework for understanding, conducting and using risk analysis suitable for advanced undergraduates, graduates, analysts and researchers from statistics, engineering, finance, medicine and the physical sciences, as well as for managers facing decision making problems involving risk and uncertainty.

## Risk Assessment And Decision Making In Business And Industry

Author : Glenn Koller
ISBN : 9781420035056
Genre : Mathematics
File Size : 67. 44 MB
Format : PDF, ePub

Building upon the technical and organizational groundwork presented in the first edition, Risk Assessment and Decision Making in Business and Industry: A Practical Guide, Second Edition addresses the many aspects of risk/uncertainty (R/U) process implementation. This comprehensive volume covers four broad aspects of R/U: general concepts, implementation processes, technical aspects, and examples of application. Each section provides practical guidance, combining technical information with advice on how to implement R/U techniques and processes in real-world corporate environments. Following an examination of general principles involved in quantitatively assessing risks and their impact on value, the book describes the two main probabilistic measures of project value - Expected Value of Success (EVS) and the Expected Value for the Portfolio (EVP). The text clearly demonstrates how these metrics are used in individual-project and portfolio management. By presenting concepts in layman's terms and fully integrating advice related to technical and human characteristics of R/U-related corporate life, this book serves as a complete primer for professionals in any business environment. What's New in the Second Edition: Provides guidance for implementation of R/U processes in modern corporations Offers a crucial breakthrough by defining the terms "risk" and "uncertainty" in ways that can be applied in all aspects of science and business Explores real-world impediments to process change and implementation Addresses R/U from a corporate decision-maker's perspective, detailing how to employ R/U to set budgets, manage portfolios, value investments, and execute other critical tasks

## Misconceptions Of Risk

Author : Terje Aven
ISBN : 9781119964285
Genre : Mathematics
File Size : 63. 67 MB
Format : PDF, Mobi

We all face risks in a variety of ways, as individuals, businesses and societies. The discipline of risk assessment and risk management is growing rapidly and there is an enormous drive for the implementation of risk assessment methods and risk management in organizations. There are great expectations that these tools provide suitable frameworks for obtaining high levels of performance and balance different concerns such as safety and costs. The analysis and management of risk are not straightforward. There are many challenges. The risk discipline is young and there area a number of ideas, perspectives and conceptions of risk out there. For example many analysts and researchers consider it appropriate to base their risk management policies on the use of expected values, which basically means that potential losses are multiplied with their associated consequences. However, the rationale for such a policy is questionable. A number of such common conceptions of risk are examined in the book, related to the risk concept, risk assessments, uncertainty analyses, risk perception, the precautionary principle, risk management and decision making under uncertainty. The Author discusses these concepts, their strenghts and weaknesses, and concludes that they are often better judged as misconceptions of risk than conceptions of risk. Key Features: Discusses common conceptions of risk with supporting examples. Provides recommendations and guidance to risk analysis and risk management. Relevant for all types of applications, including engineering and business. Presents the Author’s overall conclusions on the issues addressed throughout the book. All those working with risk-related problems need to understand the fundamental ideas and concepts of risk. Professionals in the field of risk, as well as researchers and graduate sutdents will benefit from this book. Policy makers and business people will also find this book of interest.

## Principles Of Risk Based Decision Making

Author : In c. ABS Consulting
ISBN : 9781461624912
File Size : 62. 83 MB
Format : PDF, Mobi

Principles of Risk-Based Decision Making provides managers with the foundation for creating a proactive organizational culture that systematically incorporates risk into key decision-making processes. Based on methodology adopted by a number of organizations including the federal government, this book examines risk-based decision making as a process for organizing information about the possibility for unwanted outcomes in a simple, practical way that helps decision makers make timely, informed management choices that minimize harmful effects on safety and health, the environment, property loss, or mission success.

## Environmental Risk Management

Author : Paul Pritchard
ISBN : 9781136544330
File Size : 68. 86 MB
Format : PDF, Mobi

First Published in 2000. Routledge is an imprint of Taylor & Francis, an informa company.

## Handbook For Environmental Risk Decision Making

Author : C. Richard Cothern
ISBN : 1420048732
Genre : Technology & Engineering
File Size : 70. 72 MB
Format : PDF, ePub, Mobi

This handbook describes the broad aspects of risk management involving scientific policy judgment, uncertainty analysis, perception considerations, statistical insights, and strategic thinking. This book presents all the important concepts to enable the reader to "see the big picture." This ability is extremely important - it allows the decision maker or strategic environmental planner to understand and cope with a wide variety of complex and interlinked pieces of information and data. The text presents environmental problems and, whenever applicable, the methodology required to reach a successful solution. Decisions and policies are examined. The book covers numerous objective and subjective components of environmental risk decision making. It details quantitative and comparative risk, and investigates the cost and feasibility of different decisions. Social pressures, safety, and political, religious, ethical, and psychological issues are addressed. How to evaluate the potential impact on the quality of life also is discussed. Any company doing risk assessment, risk management, or risk communication, as well as those doing environmental decision making will find this reference to be invaluable. It is also suitable as a text for courses in environmental management, environmental science, and risk assessment in the areas of risk management and strategic environmental planning.

## Decision Making

Author : David E. Bell
ISBN : 0521368510