• Journal of the Korean Operations Research and Management Science Society
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• v.28 no.4
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• pp.115-129
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• 2003

This paper suggests that the profit sharing contract can be Pareto optimal for both supplier and the purchaser. It is shown that Pareto optimal risk sharing contract can be obtained even though the decisions are made in a decentralized manner. The effect of risk attitude of the members of the supply chain is discussed. We examined various aspects of the risk sharing contract such as risk altitude, bargaining power, and cost of information system. The different risk attitude changes the optimal parameters and decision variables. Especially, we proved that, when both the supplier and the purchaser are risk averse, the purchaser orders less quantity than when the one is risk neutral and the other is risk averse. If the fixed cost for the information system is big enough to satisfy a certain condition, it is Pareto optimal not to share the profit and the purchaser takes all the risk even though he is risk averse.

• Korean Journal of Construction Engineering and Management
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• v.2 no.2 s.6
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• pp.90-97
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• 2001

The paper considers non-deterministic methods of analysing the risk exposure in a cost estimate. The method(referred to as the 'Monte Carlo simulation' method) interprets cost data indirectly, to generate a probability distribution for total costs from the deficient elemental experience cost distribution. The Monte Carlo method is popular method for incorporating uncertainty relative to parameter values in risk assessment modelling. Non-deterministic methods, they are here presented as possibly effective foundation on which to risk management in cost estimating. The objectives of this research is to develop a computerized algorithms to forecast the probabilistic total construction cost and the elemental work cost at the planning stage.

• Journal of the Korea Convergence Society
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• v.6 no.5
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• pp.1-8
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• 2015

The data of fair value hierarchy is expected to contain different degree of measurement error, information asymmetry, and information risk by the level of hierarchy. Thus, this study examines how hierarchy of fair value discriminately influences on companies' cost of capital. Through regression analysis of corporations listed from 2011 to 2014, it turns out that the regression coefficient of level 1 and 2 of fair value variable vary their rank by cost of capital types, while level 3 contains the highest regression coefficient for every cost of capital variable. In addition, further study of how the relevance between cost of capital and the fair value hierarchy gets affected by market risk management level and audit quality finds no consistent results. However, by analyzing the effect of coincident interaction through the convergence of market risk management and audit quality, when audit quality and market risk management level are high, the effect of relieving cost of capital of Level 3 gets the highest. In conclusion, fair value hierarchy data seems to affect discriminately on cost of capital by involved information risk, and the information risk could decrease by the level of market risk management and audit quality.

• Proceedings of the KSR Conference
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• 2008.06a
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• pp.796-805
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• 2008

Safety Management of Korean railway industry has been rapidly changed into a risk-based approach adopted by developed countries since Railway Safety Act 2004, Rolling Stock Risk Assessment Guidance and its following regulations came into force. The fundamental requirements for the risk-based safety management is to carry out a systematic hazard identification and quantified risk analyses including cost-benefit analyses, but there has been rare a serious discussion over risk acceptance criteria and value of life in order to be able to judge the results of risk analyses and carry out cost-benefit analyses. This study presents the results of a review of risk acceptance criteria and value of life which may be adoped to Korean railway industry through the analyses with comparison of risk accepatnce principles and risk accepatnce criteria which have been already applied to other countries or other railway operators.

• Genomics & Informatics
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• v.1 no.2
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• pp.80-86
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• 2003

Human Papillomavirus (HPV) infection is known as the main factor for cervical cancer which is a leading cause of cancer deaths in women worldwide. Because there are more than 100 types in HPV, it is critical to discriminate the HPVs related with cervical cancer from those not related with it. In this paper, the risk type of HPVs using their textual explanation. The important issue in this problem is to distinguish false negatives from false positives. That is, we must find high-risk HPVs as many as possible though we may miss some low-risk HPVs. For this purpose, the AdaCost, a cost-sensitive learner is adopted to consider different costs between training examples. The experimental results on the HPV sequence database show that the consideration of costs gives higher performance. The improvement in F-score is higher than that of the accuracy, which implies that the number of high-risk HPVs found is increased.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.29 no.1
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• pp.94-100
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• 2006

The risk management is an organized method for identifying and measuring risk and for selecting, developing, and implementing options for the handling of risk. The risk management covers all programatic and technical factors which affect the system development performance, cost, and schedule. While technical issues are primary concern for systems engineering, the three elements(performance, cost, and schedule) must be balanced for a successful risk management process. This paper proposes the risk management process for the KSLV-I(Korea Space Launch Vehicle-I) program using computer-aided systems engineering tool, Cradle. The risk management process of KSLV-I program is similar to the general risk management process, but it has its own specific features to manage large-scale complex characteristics of KSLV-I program.

• Proceedings of the Earthquake Engineering Society of Korea Conference
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• 2002.09a
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• pp.285-291
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• 2002

This paper proposes the concept and the general framework of the risk-based seismic design. Because earthquakes and the behaviors of structures are very unpredictable, probabilistic seismic design methods have been proposed after deterministic design methods. Considering these changes, we can find that the important point of seismic design is not the structural behavior itself, but the consequence of structural behavior under possible earthquakes. Risk-based seismic design can tell these consequences under any earthquakes. In this paper, structural confidences are considered by using fragility curve, and risk is modeled by failure probability and consequence-property damage cost, casualty cost.

• Korean Journal of Construction Engineering and Management
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• v.15 no.3
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• pp.113-119
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• 2014

Recently, the demand on the practical application of life-cycle cost effectiveness for design and rehabilitation of structure is rapidly growing unprecedently in engineering practice. Accordingly, in the 21st century, it is almost obvious that life-cycle cost together with value engineering will become a new paradigm for all engineering decision problems in practice. However, in spite of impressive progress in the researches on the LCC, the most researches have only focused on the Deterministic or Probabilistic LCC analysis approach (Level-1 LCC Model) at design stage. Thus, the goal of this study is to develop a practical and realistic methodology for the Lifetime risk based Life-Cycle Cost (LCC)-effective optimum decision-making at design stage.

• Journal of the Korea Safety Management & Science
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• v.20 no.3
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• pp.1-9
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• 2018

This study is intended to look into the effect of construction safety supervision system on risk control and reduction. To achieve this, a survey was carried out to 114 companies in construction, ordering, contract and management. The overall findings were as follows. The effect of construction safety supervision system on risk control and reduction showed that factors of supervision system, supervision cost and supervision method had a positive effect on risk control and reduction. And their perception of the introduction of safety supervision system in construction sites according to process showed that there was a difference between them according to the field of ordering, contract and supervision. There was the biggest difference between owner and contractor in double supervision system, but no difference between them in the perception of risk reduction. These results show that all ordering, contract and supervision are positively needed for the introduction of construction safety supervision. This means that there is a difference between owner and contractor in the perception of process according to system operation. All companies agree to system improvement by the settlement of safety supervision system for the prevention of safety accidents and safe construction, but the systematic complement of safety supervision is the burden of contractor. And there is a big difference between owner and contractor in the perception of responsibility and concern for cost burden.

• Journal of Navigation and Port Research
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• v.43 no.3
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• pp.166-171
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• 2019

Aids to Navigation(AtoN) Accident can reduce the credibility of AtoN by adding extra works to the administrators, and cause burdens and inconveniences to the users during their navigation leading to social costs (or economic losses). Prior research on social cost estimation model to determine the Encounter cost, Administrative cost and Risk cost on the Aton model was done to estimate the economic losses due to AtoN Accident. However, this research could not provide adequate study results on risk cost estimates. Therefore, this study complements the estimation model presented in the previous study, and the estimated social cost of 249 AtoN Accidents that occurred during the last 10 years (2008-2017) in the Busan Regional Office of Oceans and Fisheries jurisdiction area. The risk cost was estimated using contingent valuation method since the AtoN is a non-market goods. As a result, the social cost of AtoN Accidents for the past 10 years was estimated to total 12.4 billion won including Encounter cost of 3.1 billion won (25.38%), Administrative cost of 1.7 billion won (13.62%), and Risk cost of 7.5 billion won (61.01%).