Search results for "Conditional Value at Risk"
showing 3 items of 3 documents
Comment on “A simple way to incorporate uncertainty and risk into forest harvest scheduling”
2017
In a recent research article, Robinson et al. (2016) described a method of estimating uncertainty of harvesting outcomes by analyzing the historical yield to the associated prediction for a large number of harvest operations. We agree with this analysis, and consider it a useful tool to integrate estimates of uncertainty into the optimization process. The authors attempt to manage the risk using two different methods, based on deterministic integer linear programming. The first method focused on maximizing the 10th quantile of the distribution of predicted volume subject to area constraint, while the second method focused on minimizing the variation of total quantity of volume harvested sub…
Guidelines for risk management in forest planning – what is risk and when is risk management useful?
2018
Managing forest resources occurs under various sources of uncertainty. Depending on the management problem, this uncertainty may have a substantial impact on the quality of the solution. As our knowledge on the sources and magnitude of uncertainty improves, integrating this knowledge into the development of management plans becomes increasingly useful, as additional information can improve the decision-making process. This adjustment requires a fundamental shift in how planning problems are viewed: instead of interpreting risk management as a technique needed only for addressing problems with natural hazards, risk management should be an integral part of most planning problems. Managing ri…
Incorporating stand level risk management options into forest decision support systems
2018
Aim of study: To examine methods of incorporating risk and uncertainty to stand level forest decisions. Area of study: A case study examines a small forest holding from Jonkoping, Sweden. Material and methods: We incorporate empirically estimated uncertainty into the simulation through a Monte Carlo approach when simulating the forest stands for the next 100 years. For the iterations of the Monte Carlo approach, errors were incorporated into the input data which was simulated according to the Heureka decision support system. Both the Value at Risk and the Conditional Value at Risk of the net present value are evaluated for each simulated stand. Main results: Visual representation of the er…