Written for engineers, policy makers, economists and analysts as both a reference and a textbook, this title introduces the theoretical bases and applications of risk methods. It takes readers from the definition of needs through the theory of risk analysis and concluding with data requirements and sources.

Introduction Societal Needs Risk Analysis System Framework Knowledge and Ignorance Exercise Problems Risk Analysis Methods Introduction Risk Terminology Risk Assessment Risk Management and Control Risk Communication Exercise Problems System Definition and Structure Introduction System Definition Models Hierarchical Definitions of Systems System Complexity Exercise Problems Reliability Assessment Introduction Analytical Performance-Based Reliability Assessment Empirical Reliability Analysis Using Life Data Bayesian Methods Reliability Analysis of Systems Exercise Problems Failure Consequences and Severity Introduction Analytical Consequence and Severity Assessment Real Property Damage Loss of Human Life Injuries Indirect Losses Public Health and Ecological Damages Exercise Problems Engineering Economics and Finance Introduction Fundamental Economic Concepts Cash-Flow Diagrams Interest Formulae Economic Equivalence Involving Interest Economic Equivalence and Inflation Economic Analysis of Alternatives Exercise Problems Risk Control Methods Introduction Philosophies of Risk Control Risk Aversion in Investment Decisions Risk Homeostasis Insurance for Loss Control and Risk Transfer Benefit-Cost Analysis Risk-Based Maintenance Management Exercise Problems Data for Risk Studies Introduction Data Sources Databases Expert-Opinion Elicitation Model Modification Based on Available Data Failure Data Sources Exercise Problems Fundamentals of Probability and Statistics Sample Spaces, Sets, and Events Mathematics of Probability Random Variables and Their Probability Distributions Failure Data References and Bibliography Index