SEM506 Engineering Risk-Benefit Analysis

Instructor: TBA

ERBA emphasizes three methodologies - reliability and probabilistic risk assessment (RPRA), decision analysis (DA), and cost-benefit analysis (CBA). All of these pertain to decision making in the presence of significant uncertainty. In ERBA, the risks of particular interest are those associated with large engineering projects such as nuclear reactors, space systems, and large chemical plants. As part of RPRA, we review elementary probability theory and statistics. ERBA presents and interprets some of the many frameworks helpful for balancing risks and benefits in situations that typically involve human safety, potential environmental effects, and large financial and technological uncertainties. Although ERBA is applications oriented, we emphasize the assumptions, consequences, and practical limitations of the tools we present. We also provide a perspective on the use of formal analysis in public decisions.