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Expressing Economic Risk—Review and Presentation of a Unifying Approach
Author(s) -
Aven Terje,
Nilsen Espen Fyhn,
Nilsen Thomas
Publication year - 2004
Publication title -
risk analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.972
H-Index - 130
eISSN - 1539-6924
pISSN - 0272-4332
DOI - 10.1111/j.0272-4332.2004.00502.x
Subject(s) - risk analysis (engineering) , risk management , presentation (obstetrics) , economic risk , key (lock) , management science , bayesian network , risk assessment , computer science , engineering ethics , engineering , business , economics , artificial intelligence , management , medicine , computer security , radiology
Risk related to economic values is treated by many disciplines, including safety and production engineering, business, and project management. Within each of these and across these disciplines different nomenclature and principles are adopted for describing and communicating risk. The situation is rather confusing. In this article, we review various approaches and concepts that are used to express risk. We present and discuss a unifying approach for dealing with economic risk, with uncertainty being the key risk concept. The approach represents a rethinking on how to implement the Bayesian paradigm in practice to support decision making.