IDEAS home Printed from https://ideas.repec.org/a/bla/rmgtin/v14y2011i1p121-144.html
   My bibliography  Save this article

Minimizing the Cost of Risk With Simulation Optimization Technique

Author

Listed:
  • Yu Lei

Abstract

For risk managers, one overarching goal is to help their organizations maximize stakeholders’ value, which can be achieved by minimizing the cost of risk. Oftentimes such optimization decisions have to be made under uncertainty. This article presents a teaching note that demonstrates how to use simulation‐based software to run optimization involving uncertain factors. Specifically, a hypothetical example regarding workers’ compensation claims cost was created to provide a step‐by‐step instruction for conducting simulation optimization.

Suggested Citation

  • Yu Lei, 2011. "Minimizing the Cost of Risk With Simulation Optimization Technique," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 14(1), pages 121-144, March.
    • Handle: RePEc:bla:rmgtin:v:14:y:2011:i:1:p:121-144
    DOI: j.1540-6296.2010.01193.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1540-6296.2010.01193.x
    Download Restriction: no
    File URL: https://libkey.io/j.1540-6296.2010.01193.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert E. Hoyt & Lawrence S. Powell & David W. Sommer, 2007. "Computing Value at Risk: A Simulation Assignment to Illustrate the Value of Enterprise Risk Management," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 10(2), pages 299-307, September.
    2. Domingo Castelo Joaquin, 2007. "Loss Modeling Using Spreadsheet‐Based Simulation," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 10(2), pages 283-297, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joseph D. Haley, 2012. "An Insurance Pricing Game," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 15(1), pages 117-128, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joseph D. Haley, 2012. "An Insurance Pricing Game," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 15(1), pages 117-128, March.
    2. John Garvey & Patrick Buckley, 2011. "Using Technology to Encourage Critical Thinking and Optimal Decision Making in Risk Management Education," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 14(2), pages 299-309, September.
    3. Madhu Acharyya & Chris Brady, 2014. "Designing an Enterprise Risk Management Curriculum for Business Studies: Insights From a Pilot Program," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(1), pages 113-136, March.
    4. Kevin C. Ahlgrim & James R. Jones, 2014. "Insurance Rating Games: Strikes, Spares, and Bags," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(2), pages 297-313, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rmgtin:v:14:y:2011:i:1:p:121-144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1098-1616 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.