Modeling & Measuring of Risk

Study program: Mechanical engineering
Type and level of studies:  Doctoral studies
Course unit: pdfModeling & Measuring of Risk
Course code: DS31009
Teacher in charge:  pdfProf. Dr. Mirko Djapic
Language of instruction: English
Semester:  winter
Course unit objective:
Introduce students with advanced concepts and methods for modeling and measurement of  risk in engineering and management.
Learning outcomes of the course unit
Students should acquire knowledge and skills that will enable them to recognize the risks in its problems, modeling it using modern mathematical tools such as Bayesian belief networks and a evidence network (based on the Dempster-Shafer theory of belief functions).
Course unit contents
Theoretical classes
Historical development of the concept of risk, basic concepts and standardization of risk (ISO 31000:2009), Enterprise risk management concept (ERM), Risk assessment in different business processes, Risk as a basis for product conformity assessment, Risk assessment in standardized management systems, Mathematical tools for modeling and measurement of risk, Application of Dempster Shafer theory (evidence networks) and Bayesian networks in modeling risk.
Practical classes
A student project consists of modeling risks in the selected problem by the evidence networks
  1. Djapic, M., et al (2012): Risk Assessment Concept in the New Approach Directives and its Integration in the Enterprise Risk Management (ERM), Industrija, Vol. 40, No. 1, pp 3-38.
  2. Hampton, J., Fundamentals of enterprise risk management: how top companies assess risk, manage exposure, and seize opportunity, AMACOM, 2009.
  3. CASCO, Enterprise Risk Management — Integrated Framework, The Committee of Sponsoring Organizations of the Treadway Commission, 2004.