Multi-criteria decision-making considering risk and uncertainty in physical asset management

In this work we present a method for risk-informed decision-making in the physical asset management context whereby risk evaluation and cost-benefit analysis are considered in a common framework. The methodology uses quantitative risk measures to prioritize projects based on a combination of risk tolerance criteria, cost-benefit analysis and uncertainty reduction metrics. There is a need in the risk and asset management literature for a unified framework through which quantitative risk can be evaluated against tolerability criteria and trade-off decisions can be made between risk treatment options. The methodology uses quantitative risk measures for loss of life, loss of production and loss of property. A risk matrix is used to classify risk as intolerable, As Low As Reasonably Practicable (ALARP) or broadly tolerable. Risks in the intolerable and ALARP region require risk treatment, and risk treatment options are generated. Risk reduction benefit of the treatment options is quantified, and cost-benefit analysis is performed using discounted cashflow analysis. The Analytic Hierarchy Process is used to derive weights for prioritization criteria based on decision-maker preferences. The weights, along with prioritization criteria for risk reduction, tolerance criteria and project cost, are used to prioritize projects using the Technique for Order Preference by Similarity to Ideal Solution. The usefulness of the methodology for improved decision-making is illustrated using a numerical example.     

移动通信信息系统安全风险评估研究

为了保障移动通信信息系统的安全,制定有效的、可操作性的、科学的安全风险评估体系是当务之急。通过对国内外移动通信信息系统安全风险评估研究的现状,结合其他行业诸如铁路系统、地理信息系统等的信息安全风险评估的经验,笔者首先从一个移动通信信息安全系统风险评估的基本概念入手,给出了诸如风险、脆弱性、威胁、残余风险等一系列定义,提出了移动通信信息系统安全风险评估工作的模型和方案,以及风险评估工作中应该考虑的要素和工作细节,旨在为风险评估工作提供理论指导,使风险评估的过程和结果更具有逻辑性、系统性和可操作性,从而提高风险评估的质量和效果。实践证明了模型和方案是行之有效的。     

Transaction Costs Economics of Irreplaceability: <Emphasis Type="Italic">ex ante</Emphasis> and <Emphasis Type="Italic">ex post</Emphasis> Evaluation of Conservation Networks’ Vulnerability to Environmental Shocks

The theoretical concept, “asset specificity,” is applied to real data in the context of Danish nature conservation network planning in order to produce illustrative examples of an economic measure of the network’s vulnerability to exogenous shocks to the species composition. Three different measures of asset specificity are quantified from the shadow value of eliminating a key species from the individual grid cells. This represents a novel approach and a different interpretation of the term, as it is conventionally used as a qualitative indicator in the transaction cost economics literature. Apart from supplementing existing cost measures with an indicator of risk associated with investments in protected areas, this study demonstrates how the estimation and interpretation of various asset specificity measures for geographical areas may qualify policy makers’ choice of policy instrument in conservation planning. This differs from the more intuitive approach of basing policy instrument choice solely on the rarity of the species in a given area.     

美国资产证券化中的政府作用对我国的借鉴

美国政府在资产证券化创设过程中发挥了巨大的作用。为推动我国资产证券化的开展，我国政府可借鉴美国做法，采取修订法律、营造金融环境、设置政府机构等措施。     

Capital structure and asset utilization: the case of resource intensive industries

This research studies the relationship between the capital structure of a firm and its asset utilization rate in resource intensive industries. We study this issue from both private and public policy perspectives. From a private perspective, it's conceivable that a positive relationship may exist because a company is trying to increase its use of debt to effect a more efficient utilization of its assets. However, from a public policy perspective, finding a positive relationship between asset utilization and debt levels in natural resource sensitive industries may signal a sub-optimal exploitation of natural resources when debt levels rise. This research examines measures of leverage and asset utilization in firms from the mining, oil, and timber industries to determine whether the behavior alleged in the PALCO/MAXXAM case (an increased cutting rate to pay off junk bond financing) has been observed more systematically. We observe a positive relationship between leverage and asset utilization in all three industries when leverage is calculated using book value measures. When market value measures are used, this positive relationship no longer holds in the mining industry. Possible explanations for these results are offered.     

Risk and opportunity in upgrading the US drinking water infrastructure system

This paper presents a practical risk assessment methodology to provide drinking water infrastructure (DWI) decision-makers with an objective risk assessment tool. The purpose of this risk assessment tool is to maintain the desired level-of-service or systems reliability [r(f)], while managing the financial uncertainty of the expected budgetary impact within the capital improvement program (CIP). The goal of this paper is to demonstrate the value of an objective risk assessment tool for estimating the DWI decision-maker's sensitivity to the risk of systems failure (R). The objectives are to: (1) incorporate probability of systems failure [p(f)] into the CIP budgetary analysis process and (2) evaluate the affects of p(f) on the expected CIP budgetary outcome. The magnitude of the expected budgetary impact is managed through the DWI decision-maker's sensitivity to R, which is represented by the level of the rate of reinvestment (RR). The expected result of the proposed risk assessment tool demonstrates that by proactively managing R to maintain a desired r(f) will effectively manage the impact of uncertainty on the expected budgetary outcome within the CIP. The expected contribution of the practical risk assessment methodology is to provide DWI decision-makers with the ability to reduce budgetary uncertainty when allocating limited financial resources among competing operational, repair, maintenance, and expansion activities within the CIP. The conclusions of the paper reveal that if DWI decision-makers assume risk-avoidance positions through proactive asset management (AM) strategies, they will achieve positive affects on expected budgetary outcomes.