AFF9520

Risk analysis and economics

Dr Peter Pope

6 points
* 3 hours per week
* Second semester
* Caulfield, distance, in-house
* Prerequisite: special selection criteria apply

Objectives On completion of this subject students should have developed a sound basic understanding of the concepts and applications of systematic risk analysis.

Synopsis Topics include the need for risk analysis and the costs involved; the nature of risk and human behaviour; the nature of exposure to risk including property, earnings, personnel and legal exposures; the range of risk identification and measurement techniques most commonly used in industry including: physical inspections, check lists, organisation charts, flow charts, hazard and opposability studies, fault trees, hazard indices and analysis of contracts; fundamental statistical analysis including the use of probability calculations and simulation models; the importance of risk analysis, reports and the techniques of report writing.

Assessment Three minor assignments: 20% each
* Examination (3 hours): 40%

Prescribed texts

Dickson G C A Risk economics Witherby
Ritchie B and Marshall D Business risk management Chapman and Hall, 1993