The fuzzy logic system for risk level assessment

H. C W Lau, E. N M Cheng, Tung Sun Chan

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

Abstract

A company needs to face different kinds of risk. They are often difficult to assess and manage since the decision makers cannot evaluate the risks in a systematic, orderly manner. A direct or indirect loss will be suffered as a result. Using an express delivery service company as an illustrative example, this study proposes a fuzzy logic approach to assess the company's risk level. It demonstrates how to assess the risk level by a risk factor. This risk factor is evaluated with fuzzy values in terms of the likelihood of occurrence and of the severity of the consequence. The output of the risk assessment system is the risk level of the risk factor given by the rule-base. By having an indication of the company's risk level, decision makers become more sensitive to any changes in the environment and hence are able to draw up preventive measures and plan emergency actions in a more rational manner.
Original languageEnglish
Title of host publicationProceedings of the ISSAT International Conference on Modeling of Complex Systems and Environments
PublisherInternational Society of Science and Applied Technologies
Pages26-30
Number of pages5
ISBN (Electronic)9780976348634
Publication statusPublished - 1 Jan 2007
EventISSAT International Conference on Modeling of Complex Systems and Environments - Ho Chi Minh City, Viet Nam
Duration: 16 Jul 200718 Jul 2007

Conference

ConferenceISSAT International Conference on Modeling of Complex Systems and Environments
Country/TerritoryViet Nam
CityHo Chi Minh City
Period16/07/0718/07/07

ASJC Scopus subject areas

  • Applied Mathematics
  • Modelling and Simulation
  • Statistics and Probability
  • Computer Science(all)

Cite this