European Master and Certification Program
in Risk Engineering and Management

V-R39: DAA
Decision Aid Approaches for Risk Management

Course code: 161346
Language of instruction: English
Lecturers: Dr. Chabane Mazri (INERIS - Institut National de l'Environnement Industriel et des Risques)
Assessment: Defined in the module

Short description

Decision making is a process where multiple factors interact to shape the final outcome. Those factors can be technical, informational, emotional/psychological, cultural… Nevertheless, the limited rationality of economic operators makes the decision exercise more and more difficult in a more and more complex world. Safety management requires short, mid and long term decisions that may highly influence the ability of the organization to cope with its risks.

Objectives

In order to help managers when dealing with their complex environment, decision aid approaches can be implemented so to:

  1. allow a better understanding of the decision context, stakes and possible consequences
  2. elaborate a formal description of the problem to be resolved and the stakeholders to involve
  3. develop mathematical based models and tools that help decision making including multicriteria approaches and KPIs definition
  4. develop validation and uncertainties management approaches for decision making.

At the end of the course, students are expected to have basic knowledge about:

  • Main descriptive and prescriptive concepts related to decision making in risk management
  • A vision of the key decision making moments of risk management frameworks
  • A global vision of the tools available to improve the way managers are dealing with decision making.

Target Attendees / Participants

The course is dedicated to the wide range of participants, such as:

  • professionals dealing with risk issues on management or operation level
  • individuals with no previous experience in the field of risk management, but willing to extend their knowledge and take up new roles in risk management in their companies
  • Students of Steinbeis Master of Risk Engineering and Management program and similar programs.

Course Content by Units

The course will cover the following units:

Unit

Title & contents in brief

1.

Introduction to decision making in risk management

  • Present how decision making may shape the way organization deals with risk. Through the study of various risk management frameworks (IRGC, ISO31000).
  • Stakes and challenges associated to those critical phases will be highlighted.

2.

Reference models

A global presentation of the way decision making is considered through different disciplines and theoretical frameworks. At the end of this second phase, the students will develop a good overview of the reference models and theories related to decision making.

3.

Methods and tools

The scope of decision support tools is large. This section will introduce the most frequently used tools and methods within organizations dealing with risks.

Highlights will be given to:

  • Multicriteria approaches like ELECTRE and Multi Attribute Utility Theory.
  • Methods to elaborate and choose Key Performance Indicators for risk management.
  • Uncertainties management in decision making.

 


Teaching Methods

The course:

  • is illustrated by number of examples;
  • presents commonly used methods and tools and
  • Provides exercises and preparation for the final exam.

Literature

  1. BOUYSSOU, D. at all (2000) Evaluation and decision models. A critical perspective. Kluwer Publishers.
  2. BOUYSSOU, D. at all. (2006); Evaluation and decision models with multiple criteria. Stepping stones for the analyst. Springer
  3. Norese, M. F. (1996). A process perspective and multicriteria approach in decision-aiding contexts. Journal of Multi-Criteria Decision Analysis, 5:133–144.
  4. Roy, B. (1998). A missing link in operational research decision aiding: Robustness analysis. Foundations of Computing and Decision Science, 3(23):141–160.
  5. Simon, H. A. (1957). A behavioral model of rational choice. In: H. A. Simon (Ed.) Models of man: Social and rational. Mathematical essays on rational human behavior in a social setting, pp. 241–260. Wiley, New York.


For more information about the European Master and Certification Program in Risk Engineering and Management in general, go the Homepage.
For more information about the European Master Program in Risk Engineering and Management in general, go the Master Study page.
To see more courses in the curriculum, go to The curriculum page, or by date and topic go to the Calendar of Courses page.
Contact: via email sti889@risk-technologies.com or phone +49 711 1839 781 or +49 711 1839 647
(Course profile ID: V-R39:, generated on November 19, 2018)