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Nyttohänsyn i investeringar avseende brandskydd

Altin, Elisabet and Mola, Johanna (2004) In LUTVDG/TVBB--5134--SE VBR920
Division of Fire Safety Engineering
Risk Management and Safety Engineering
Division of Risk Management and Societal Safety
Abstract
Investments in risk reduction are very complex with many factors that affect the overall profitability of the investment. Therefore, different models and approaches are used in the decision making process. An analysis of the problem is then made according to certain basic rules. When the risk situation is evaluated in this manner the decisions that are made are rational and consistent. By using the utility function as a tool to quantify the value of risk reduction that is incurred by the investment, the investments capital value is adjusted according to the company’s views on risk taking. The conclusion that is reached from the study of the companies utility function is that a great deal of time and work has to be put into the project by... (More)
Investments in risk reduction are very complex with many factors that affect the overall profitability of the investment. Therefore, different models and approaches are used in the decision making process. An analysis of the problem is then made according to certain basic rules. When the risk situation is evaluated in this manner the decisions that are made are rational and consistent. By using the utility function as a tool to quantify the value of risk reduction that is incurred by the investment, the investments capital value is adjusted according to the company’s views on risk taking. The conclusion that is reached from the study of the companies utility function is that a great deal of time and work has to be put into the project by the people who are making the decisions, in order to get accurate and useful results.

A case study has been undertaken at Volvo Aero ́s plant in Trollhättan. Its purpose was to demonstrate how the utility formula could be used when an investment in a sprinkler system is evaluated. The case study is prescriptive and its purpose is to give concrete examples of how the normative theory in the first part of the report, can help the decision maker in his choice of different alternatives. (Less)
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author
Altin, Elisabet and Mola, Johanna
supervisor
organization
course
VBR920
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Decision theory, Utility function, Fire safety, Investment appraisal, Beslutsteori, Brandskydd, Nyttofunktion, Investeringsbedömning, kostnad, nytta, cba, kostnad/nytta, kostnad-nytta, cost, benefit, cost-benefit, cost/benefit
publication/series
LUTVDG/TVBB--5134--SE
report number
5134
ISSN
1402-3504
language
Swedish
id
1688856
date added to LUP
2011-01-20 14:20:02
date last changed
2014-03-10 10:40:34
@misc{1688856,
  abstract     = {Investments in risk reduction are very complex with many factors that affect the overall profitability of the investment. Therefore, different models and approaches are used in the decision making process. An analysis of the problem is then made according to certain basic rules. When the risk situation is evaluated in this manner the decisions that are made are rational and consistent. By using the utility function as a tool to quantify the value of risk reduction that is incurred by the investment, the investments capital value is adjusted according to the company’s views on risk taking. The conclusion that is reached from the study of the companies utility function is that a great deal of time and work has to be put into the project by the people who are making the decisions, in order to get accurate and useful results.

A case study has been undertaken at Volvo Aero ́s plant in Trollhättan. Its purpose was to demonstrate how the utility formula could be used when an investment in a sprinkler system is evaluated. The case study is prescriptive and its purpose is to give concrete examples of how the normative theory in the first part of the report, can help the decision maker in his choice of different alternatives.},
  author       = {Altin, Elisabet and Mola, Johanna},
  issn         = {1402-3504},
  keyword      = {Decision theory,Utility function,Fire safety,Investment appraisal,Beslutsteori,Brandskydd,Nyttofunktion,Investeringsbedömning,kostnad,nytta,cba,kostnad/nytta,kostnad-nytta,cost,benefit,cost-benefit,cost/benefit},
  language     = {swe},
  note         = {Student Paper},
  series       = {LUTVDG/TVBB--5134--SE},
  title        = {Nyttohänsyn i investeringar avseende brandskydd},
  year         = {2004},
}