Nyttohänsyn i investeringar avseende brandskydd
(2004) In LUTVDG/TVBB--5134--SE VBR920Division of Fire Safety Engineering
Risk Management and Safety Engineering (M.Sc.Eng.)
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)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1688856
- author
- Altin, Elisabet and Mola, Johanna
- supervisor
- organization
- course
- VBR920
- year
- 2004
- 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
- 2020-12-03 14:26:05
@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}}, language = {{swe}}, note = {{Student Paper}}, series = {{LUTVDG/TVBB--5134--SE}}, title = {{Nyttohänsyn i investeringar avseende brandskydd}}, year = {{2004}}, }