Disaster Insurance Using Portfolio Management Techniques
- Topics:
- Growth
- Source:
- Portfolio Decisions
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Overview: The presentation defines Portfolio Management as a method to compare the relative attractiveness of alternative investments. It is an application of Markowitz’ 1952 “Portfolio Selection” works to oil and gas investments. It is a decision process that seeks to address business problems by manipulating and understanding the mix and timing of projects undertaken. It defines disaster as any single event, which results in a significant failure to meet company goals. The importance of insurance is also pointed out in this slide-show. When evaluating at risk projects that are large and unique, expected value analysis does not adequately describe the problem. The probabilistic analysis does indicate the problem, but does little to indicate a solution. Finally, the presentation shows that this is an exercise in thinking about the business plan using Portfolio Management techniques, not in simply “optimizing the portfolio.”
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Format: PDF | Size: 2,529KB | Date: Jan 2003 | Pages: 40
