The decision support model for risk management

A conceptual approach

  • Warwick Smith GNS Science, Lower Hutt, New Zealand

Abstract

Risk management decisions often demand the allocation of scarce resources in mitigation of different hazards. A quantitative basis for decision-making can be provided by a detailed risk assessment, in which the current risk and those that obtain under proposed projects can be evaluated. The average annual loss, or expected value, is not a useful measure of extreme risk. The conditional expected value, calculated for a series of probability ranges, provides measures of the risk that can be assembled into a decision table so that informed decisions can be made. The conditional expected value can be calculated even when the losses are only available in terms of a cumulative probability function.

References

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Published
2004-12-31
How to Cite
Smith, W. (2004). The decision support model for risk management. Bulletin of the New Zealand Society for Earthquake Engineering, 37(4), 149-155. https://doi.org/10.5459/bnzsee.37.4.149-155
Section
Articles

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