In selecting the preferred course of action, decision makers are often uncertain about one or more probabilities of interest. The experimental literature has ascertained that this uncertainty (ambiguity) might affect decision makers’ preferences. Then, the decision maker might wish to...

Simulation models support managers in the solution of complex problems. International agencies recommend uncertainty and global sensitivity methods as best practice in the audit, validation and application of scientific codes. However, numerical complexity, especially in the presence of a high...

Mergers and acquisitions (M&A), private equity and leveraged buyouts, securitization and project finance are characterized by the presence of contractual clauses (covenants). These covenants trigger the technical default of the borrower even in the absence of insolvency. Therefore, borrowers may...

Decision makers benefit from the utilization of decision-support models in several applications. Obtaining managerial insights is essential to better inform the decision-process. This work offers an in-depth investigation into the structural properties of decision-support models. We show that...

In this work, we introduce a new method for the sensitivity analysis of model output in the presence of finite changes in one or more of the exogenous variables. We define sensitivity measures that do not rest on differentiability. We relate the sensitivity measures to classical differential and...

Risk achievement worth is one of the most widely utilized importance measures. RAW is defined as the ratio of the risk metric value attained when a component has failed over the base case value of the risk metric. Traditionally, both the numerator and denominator are point estimates. Relevant...

Evaluating the economic attractiveness of large projects often requires the development of large and complex financial models. Model complexity can prevent management from obtaining crucial information, with the risk of a suboptimal exploitation of the modelling efforts. We propose a methodology...

In the management of complex systems, knowledge of how components contribute to system performance is essential to the correct allocation of resources. Recent works have renewed interest in the properties of the joint (J) and differential (D) reliability importance measures. However, a common...