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The life safety and risk management optimization problem

Skrypnyk A.

Management and Production Engineering Review

2013

Vol. 4, No. 2

89--92

It was considered the possibility of optimization approach of the risk management problems based on the stochastic nature of the losses. Since the losses functional magnitude is a random variable, then it was considered the value of losses on a significance level α (losses probability).It was shown decision existence which minimized expected losses. The problem has practical application in coal mining, occasional transportation and other business projects associated with the possibility of life losses.