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The robust appraisal of exploration drilling concepts is essential for establishing the economic viability of a prospective recovery field. This study evaluates the different concept selection methods that were considered for drilling operations at the Trym field in Norway. The construction of drilling rigs is a capital-intensive process, and it involves high levels of economic risk. These risks can be broadly categorised as aleatoric (i.e. those related to chance) and epistemic (i.e. those related to knowledge). Evaluating risks in the investment appraisal process tends to be a complicated process. Project risks are evaluated using Monte Carlo simulation (MCS) and are based on the fuzzy analytic hierarchy process (AHP). MCS provides a useful means of evaluating variabilities (i.e. aleatoric risks) in oil drilling operations. However, many of the economic risks in oil drilling processes are unanticipated, and, in some cases, are not readily expressible in quantitative values. The fuzzy AHP is therefore used to appraise the qualitatively defined indirect revenues comprising risks that affect future flexibilities, schedule certainty and health and safety performance. Both the Monte Carlo technique and the fuzzy AHP technique found that a cumulative revenue variation of up to 30% is possible in any of the considered drilling options. The fuzzy AHP technique estimates that the chances of profitability being less than NOK 1 billion over a five-year period is 0.5%, while the Monte Carlo technique estimates suggest a more conservative proportion of 10%. Overall, the fuzzy AHP technique is easy to use and flexible, and it demonstrates increased robustness and improved predictability.

In effort to understand and reduce flood consequences more effectively and strategically, flood risk assessment has been a cornerstone of a long-term flood management. One component of flood risk assessment is the estimation of a range of possible damage to an area exposed to flooding, that is, the vulnerability curve. The vulnerability curve can be depicted by a stage–damage relationship. This study attempts to investigate how vulnerability to flooding can be quantitatively assessed using a micro-scale approach in Malaysia’s vulnerable areas. A residential area in Kota Bharu was chosen as the case study area. Depth–damage relationships from a multiple regression function of Department of Irrigation and Drainage Malaysia and spatial variability of residential buildings were used for the micro-scale assessment. Final estimates of expected annual damage were then calculated for each building type at 1-, 3- and 5-day flood durations. Results show that the methodology adopted is feasible to be applied for local-scale assessment flood risk assessment in Malaysia. The results also suggest that applying the methodology is possible when given wider availability of resources and information. This is particularly important for a robust end-to-end flood risk assessment for long-term effective flood management in Malaysia.

A commonly misunderstood characteristic of ERM in Switzerland is that it is perceived as a risk minimization tool. However, ERM is about controlling an ideal risk exposure level to pursue strategic objectives. ERM has emerged as an important business topic in Switzerland. As major challenges still pose a threat to successful ERM implementation, this study provides some causes for reflection on how to implement ERM model in order to gain a comprehensive view on all risks, opportunities and their respective interdependencies. Moreover, this study suggests policy makers to think about how to strengthen risk-based disclosures in the future.

This chapter studies the importance of implementation of innovational projects of technological growth through public–private partnership (PPP). The authors determine the probability of implementing a project of PPP depending on distribution of risks between its participants. Usage of the mechanism of PPP allows optimizing possible risks during implementation of innovational activities, attracting large business for creation and implementation of new technologies, and forming sustainable ties between R&D departments and business structures. The types of risks in the projects of PPP are given, as well as tendencies of their emergence depending on the stage of implementation of the innovational project, including the following: formation of policy on development of PPP; preparatory, implementary, commercialization of the results of joint activities; and monitoring and control over execution of the project. The algorithm of the system of risk management in innovational projects of technological growth on the platform of PPP is presented. The methods of overcoming the risks that appear during implementation of an innovational project of technological growth within PPP are given. A special attention should be paid to the fourth (distribution of risks) and fifth (reduction of risks) stages. During implementation of innovational projects with application of a business model of PPP, the risks are dealt with by the participant who can manage them better. Reduction of risks is achieved better if several strategies are used – for decreasing the influence of the risk on the innovational project (strategies of risk evasion, acceptance of the risk situation, compensation, transfer, and reduction).

Strong versions of the Precautionary Principle (PP) require regulators to prohibit or impose technology controls on activities that pose uncertain risks of possibly significant environmental harm. This decision rule is conceptually unsound and would diminish social welfare. Uncertainty as such does not justify regulatory precaution. While they should reject PP, regulators should take appropriate account of societal aversion to risks of large harm and the value of obtaining additional information before allowing environmentally risky activities to proceed.

This chapter aims to advance the debate on enterprise risk management (ERM) frameworks within different contexts. We discuss the economic, business and regulatory environments that set the framework for company risk management practices in Lithuania while contrasting ERM features at the company level. ERM practices are examined using two company cases – a private business company and a state-owned enterprise (SOE), and evidence is based on interviews with their management, as well as their documentation. The findings indicate the co-existence of a functional vs systematic approach to risk management. Moreover, evidence supports the notion of the shifting of risk management from a functional risk management approach to a systematic approach within risk portfolio management. We assume that risk management is a conceptualized subject of management and research, with a rather weak connection with enterprise goals and operations.