Risk Analysis in Engineering and Economics

This book describes the fundamental concepts, methods, and applications of risk analysis and management. Containing contemporary case studies, such as protecting hurricane-prone regions and critical infrastructure, the second edition covers risk finance, predictive risk management, and performance segregation and aggregation within a risk framework. To help readers translate discussed techniques into real-world solutions, the book includes a wealth of new and updated end-of-chapter problems, 320+ tables and figures, over 110 diverse examples, numerous end-of-book references, and a bibliography. Plus, homeland security applications are incorporated throughout.

Risk Analysis in Engineering and Economics is required reading for decision making under conditions of uncertainty. The author describes the fundamental concepts, techniques, and applications of the subject in a style tailored to meet the needs of students and practitioners of engineering, science, economics, and finance. Drawing on his extensive experience in uncertainty and risk modeling and analysis, the author covers everything from basic theory and key computational algorithms to data needs, sources, and collection. He emphasizes practical use of the methods presented and carefully examines the limitations, advantages, and disadvantages of each to help readers translate the discussed techniques into real-world solutions.

This Second Edition:

• Introduces the topic of risk finance
• Incorporates homeland security applications throughout
• Offers additional material on predictive risk management
• Includes a wealth of new and updated end-of-chapter problems
• Delivers a complementary mix of theoretical background and risk methods
• Brings together engineering and economics on balanced terms to enable appropriate decision making
• Presents performance segregation and aggregation within a risk framework
• Contains contemporary case studies, such as protecting hurricane-prone regions and critical infrastructure
• Provides 320+ tables and figures, over 110 diverse examples, numerous end-of-book references, and a bibliography

Unlike the classical books on reliability and risk management, Risk Analysis in Engineering and Economics, Second Edition relates underlying concepts to everyday applications, ensuring solid understanding and use of the methods of risk analysis.