Risk Analysis in Engineering and Economics

Risk Analysis in Engineering and Economics is required reading for decision making under conditions of uncertainty. The author describes the fundamental concepts, techniques, and applications of the subject in a style tailored to meet the needs of students and practitioners of engineering, science, economics, and finance. Drawing on his extensive experience in uncertainty and risk modeling and analysis, the author covers everything from basic theory and key computational algorithms to data needs, sources, and collection. He emphasizes practical use of the methods presented and carefully examines the limitations, advantages, and disadvantages of each to help readers translate the discussed techniques into real-world solutions.This Second Edition: Introduces the topic of risk financeIncorporates homeland security applications throughoutOffers additional material on predictive risk managementIncludes a wealth of new and updated end-of-chapter problemsDelivers a complementary mix of theoretical background and risk methodsBrings together engineering and economics on balanced terms to enable appropriate decision makingPresents performance segregation and aggregation within a risk frameworkContains contemporary case studies, such as protecting hurricane-prone regions and critical infrastructureProvides 320+ tables and figures, over 110 diverse examples, numerous end-of-book references, and a bibliographyUnlike the classical books on reliability and risk management, Risk Analysis in Engineering and Economics, Second Edition relates underlying concepts to everyday applications, ensuring solid understanding and use of the methods of risk analysis.

Praise for the First Edition"This book ambitiously tackles risk analysis from the ground up. … an excellent reference for individuals studying in a variety of risk-related disciplines. … enlightening [examples]…attractive to students approaching risk studies from a variety of substantive backgrounds. … Advanced students are likely to find Ayyub's treatments…exceedingly valuable."—Journal of the American Statistical Association, June 2004, Vol. 99, No. 466"… a good textbook and reference. The mix of engineering and economics is well balanced. … Valuable for students after college and useful for professional engineers."—Technometrics, August 2004, Vol. 46, No. 3Praise for the Second Edition"… one of a kind in the market. … I am not aware of books that cover the subject in as comprehensive a manner."—Professor Nii O. Attoh-Okine, University of Delaware, Newark, USA

Bilal M. Ayyub is professor of civil and environmental engineering at University of Maryland, College Park and director of the Center for Technology and Systems Management at A. James Clark School of Engineering. Highly decorated and widely published, he holds degrees from Kuwait University and the Georgia Institute of Technology. A fellow of ASCE, ASME, SRA, and SNAME, as well as a senior member of IEEE, he has completed research and development projects for entities including the National Science Foundation, U.S. Air Force, U.S. Coast Guard, Army Corps of Engineers, Navy, Department of Homeland Security, and private insurance and engineering firms.