OS4011 Risk Benefit Analysis

This course emphasizes decision analysis, probabilistic risk assessment, and cost-benefit analysis in systems analysis and systems acquisition contexts. The course is designed to give students an understanding of how these diverse topics can be applied to a decision-making process that must take into consideration significant technological and financial risk. The course will present and interpret a framework for balancing risks and benefits to applicable situations. Typically, these involve large financial and technological uncertainties. Concepts are applied to real-world problems resulting in decision models that provide insight, understanding and improvement of acquisition decisions.

Prerequisite

OS3080, or an equivalent graduate level course in probability modeling

Lecture Hours

3

Lab Hours

2

Course Learning Outcomes

Upon successful completion of this course, you will demonstrate you can:

• Apply the principles of probabilistic risk assessment in the context of systems analysis decision problems. This includes a framework for balancing risks and benefits, and analysis under conditions of large financial and technological uncertainties.
• Appropriately apply risk benefit methodologies in decision making processes.
• Effectively and proficiently utilize Risk Benefit Analysis tools in real world applications.
• Develop and employ software simulation programs or spreadsheet functions to provide quantitative insights into decision making processes.
• Communicate Risk Benefit Analysis case studies in a comprehensive, yet succinct, manner by developing a presentation for the class.