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Section Meetings: May 2016
will be held at the: Landry's Seafood

May Meeting Topic: Determining a Risk Tolerance Coefficient for You or Your Company

Topic Information:

Join us Thursday night, May 19th for the next AACE RMS monthly meeting at Lanury's in South Denver. After some networking and dinner Mr. John Schuyler, a consultant and trainer in risk & economic decision analysis and project risk management, will present on how to determine a risk tolerance coefficient for you or your company.

Decision-makers are sometimes caught in decision dilemmas. Often, the concern is about risk. The best economic alternative (highest expected value NPV) often has high risk.

How does an individual or a company trade-off value versus risk? There is one good way: Define and apply a "utility function." This is a constructed curve that completely represents risk policy. It translates the unemotional, objective measure, such as NPV, into a risk attitude-adjusted value.

In our meeting, you will be challenged to evaluate example decisions. Using choices and judged values, you will start to converge on your "risk tolerance coefficient." This is a single number that characterizes degree of risk aversion. This takes a bit of practice and feedback. A simple equation is easier to apply than using a chart. If you want to check the calculations, please bring a calculator or smartphone app that has Ln and Exp functions.

Having a risk policy will be helpful in making important decisions, in such areas as portfolio selection, buying insurance, and competitive bidding.

John Schuyler, CCP, CMA, CMC, DRMP, PMP and PE, is a consultant and trainer in risk and economic decision analysis and in project risk management. He has over 40 years' experience in analysis, consulting, and management. He is the author of two books, several courses, and over 40 papers, articles, and handbook chapters. John has BS and MS degrees in engineering physics from Colorado Mines and an MBA from C.U. Boulder.

Networking will start at 6:00pm. Dinner and brief section news will start at 6:20pm. The main presentation on Determining Risk Tolerance will start around 7:00pm.

We look forward to seeing you for what should be a really interesting evening and another great meeting with our AACE association.

Register Now!

Landry's Seafood
7209 South Clinton Street
Englewood, CO 80112

Thursday, May 19, 2016

Please email Mark Scheel, RMS Vice President, if you have any questions about the event at mscheel@ball.com.

Thank you for your attention and response, we look forward to seeing you at this month's meeting at Landry's Seafood in South Denver.

The next three meetings on the horizon will be:

  • AACEI Annual Conference June 26-29 in Toronto
  • Summer Event TDB
  • September 15th in North Denver

Some of the past presentations and section information can be found on our website here.
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