Investment appraisal using quantitative risk analysis

• Investment appraisal concerned with investments in fire safety systems is discussed. Particular attention is directed at evaluating, in terms of the Bayesian decision theory, the risk reduction that investment in a fire safety system involves. It is shown how the monetary value of the change from a building design without any specific fire protection system to one including such a system can be estimated by use of quantitative risk analysis, the results of which are expressed in terms of a Risk-adjusted net present value. This represents the intrinsic monetary value of investing in the fire safety system. The method suggested is exemplified by a case study performed in an Avesta Sheffield factory. (C) 2002 Elsevier Science B.V. All rights reserved.

Subject headings

TEKNIK OCH TEKNOLOGIER  -- Samhällsbyggnadsteknik -- Annan samhällsbyggnadsteknik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Civil Engineering -- Other Civil Engineering (hsv//eng)

TEKNIK OCH TEKNOLOGIER  -- Samhällsbyggnadsteknik -- Husbyggnad (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Civil Engineering -- Building Technologies (hsv//eng)

Keyword

decision analysis

investment appraisal

fire

Bayesian updating

protection

risk analysis

Publication and Content Type

art (subject category)

ref (subject category)