Risk Assessment and Decision Making in Business and Industry : A Practical Guide, Second Edition

Risk Assessment and Decision-Making in Business and Industry: A Practical Guide, Second Edition addresses the many aspects of risk/uncertainty process implementation. It 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. The book describes the two main probabilistic measures of project value: Expected Value of Success and the Expected Value for the Portfolio. The text clearly demonstrates how these metrics are used in individual-project and portfolio management.

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