Risk quantification using qualitative tools
Measuring risk and including it within the evaluation of mining projects has the potential to facilitate better decision-making practices. By quantifying the risks associated with a particular mining scenario, these uncertain components can influence the project’s value. Unfortunately, many of the r...
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| Format: | Journal Article |
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Inderscience Enterprises Ltd
2010
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| Online Access: | http://hdl.handle.net/20.500.11937/16358 |
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curtin-20.500.11937-163582017-09-13T16:07:59Z Risk quantification using qualitative tools Maybee, Bryan risk evaluation of mining projects real options uncertainty recognition qualitative risk assessment DCF risk-based evaluation quantifying risk discounted cash flows Measuring risk and including it within the evaluation of mining projects has the potential to facilitate better decision-making practices. By quantifying the risks associated with a particular mining scenario, these uncertain components can influence the project’s value. Unfortunately, many of the risk factors that influence a mining project are qualitative in nature, and do not easily lend themselves to numerical evaluation. This paper looks at some of the misapplications of quantitative risk analysis tools in the highly uncertain mining industry. It begins with a review of the progression of valuation techniques that have been used in the mining industry, followed by a look at some of the issues with performing a risk-based evaluation. Using a case study, qualitative risk analysis tools are used to show how these quantitative issues can be alleviated, closing with a brief discussion about possible future research directions. 2010 Journal Article http://hdl.handle.net/20.500.11937/16358 10.1504/IJDSRM.2010.034674 Inderscience Enterprises Ltd restricted |
| repository_type |
Digital Repository |
| institution_category |
Local University |
| institution |
Curtin University Malaysia |
| building |
Curtin Institutional Repository |
| collection |
Online Access |
| topic |
risk evaluation of mining projects real options uncertainty recognition qualitative risk assessment DCF risk-based evaluation quantifying risk discounted cash flows |
| spellingShingle |
risk evaluation of mining projects real options uncertainty recognition qualitative risk assessment DCF risk-based evaluation quantifying risk discounted cash flows Maybee, Bryan Risk quantification using qualitative tools |
| description |
Measuring risk and including it within the evaluation of mining projects has the potential to facilitate better decision-making practices. By quantifying the risks associated with a particular mining scenario, these uncertain components can influence the project’s value. Unfortunately, many of the risk factors that influence a mining project are qualitative in nature, and do not easily lend themselves to numerical evaluation. This paper looks at some of the misapplications of quantitative risk analysis tools in the highly uncertain mining industry. It begins with a review of the progression of valuation techniques that have been used in the mining industry, followed by a look at some of the issues with performing a risk-based evaluation. Using a case study, qualitative risk analysis tools are used to show how these quantitative issues can be alleviated, closing with a brief discussion about possible future research directions. |
| format |
Journal Article |
| author |
Maybee, Bryan |
| author_facet |
Maybee, Bryan |
| author_sort |
Maybee, Bryan |
| title |
Risk quantification using qualitative tools |
| title_short |
Risk quantification using qualitative tools |
| title_full |
Risk quantification using qualitative tools |
| title_fullStr |
Risk quantification using qualitative tools |
| title_full_unstemmed |
Risk quantification using qualitative tools |
| title_sort |
risk quantification using qualitative tools |
| publisher |
Inderscience Enterprises Ltd |
| publishDate |
2010 |
| url |
http://hdl.handle.net/20.500.11937/16358 |
| first_indexed |
2018-09-06T19:34:51Z |
| last_indexed |
2018-09-06T19:34:51Z |
| _version_ |
1610887978161274880 |