Using Risk Analysis to Optimize Engineering Economy

Abstract

The Engineering Economy of a project plays an important role in determining the overall success of the company or group involved. Project risks may affect the budget, schedule, performance, quality, or safety aspects of the project or system. These risks could mean the difference between a company’s economic stability and bankruptcy. This bibliometric analysis surveys publications from the last two decades that used risk analysis to reduce severity or occurrence of profit loss in a project. Economic risks can occur anywhere in a project lifecycle from the initial concept to product retirement. Risks that exist later in the project lifecycle can cause more severe economic consequences. Research into the topic of risk analysis has changed over the years as companies compare the tradeoffs of risk analysis in decision making. Using risk analysis results in additional costs from conducting thorough risk assessments, but it has the potential to provide financial benefit through risk treatment methods. The insights from this bibliometric analysis identify gaps that require further investigation, while also contributing to a better understanding of recent research regarding risk analysis to prevent unforeseen profit loss.