| Author | Rawiwan Chayeenet |
| Call Number | AIT Thesis no.OTM-11-04 |
| Subject(s) | Risk assessment--Thailand
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| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Offshore Technology and Management, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. OTM-11-04 |
| Abstract | This work measures corporate risk tolerance, and studies its applications on optimal percentage of working interest (%WI) and risk tolerance ratio (RTR). In addition, there is automatically tool developed for the purpose of this assessment. The one scientific approach for this study is Risk Preference Theory which considers risk attitude of decision makers while other traditional methods (NPV and IRR) do not interest a company’s risk tolerance or risk culture. Therefore, inconsistent risk-based decision in a company arises. For studying applications of corporate risk tolerance, there are seven decision makers from two levels (management and technical level) from three Petroleum E&P Companies in Thailand attended. The questionnaire based on industry specific technique is the tool; decision makers need to select one preferred level to participate in each project after considering conditions (values and probabilities of success and failure outcomes), and then mathematical mapping to transform to be risk tolerance values in the unit of money. The automatically tool is created in form of program, people who being in decision making levels in companies can be measured their risk tolerances conveniently, and set out achieving values to be corporate risk policy, then applying to calculate optimal percentage of working interest to invest in any projects automatically. Results show that decision makers in management level have higher risk tolerances than technical level for all three companies. This means that guys in management level are more willingness to take risk in projects which have high exposure of loss. Conversely, technical level afraid to invest in those projects because he/she cannot accept that risk. Besides all of them have consistency rating categorized as “High”. However, decision makers in management level also have consistency measure values more than technical level which presents their making decision skills and experiences facing with risky projects. To studying optimal percentage of working interest, higher risk tolerance value suggests investing in any projects with higher percentage of participation. While risk tolerance ratio (RTR) is calculated based on two platforms; first is equation based on U.S. companies and second is based on companies in Thailand. They provide results different. However, highest risk tolerance does not lead to maximum performance for companies always. |
| Year | 2011 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. OTM-11-04 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Offshore Technology and Management (OTM) |
| Chairperson(s) | Chiu, Gregory L.F. |
| Examination Committee(s) | Thitisak Boonpramote;Chotchai Charoenngam |
| Scholarship Donor(s) | Royal Thai Government Fellowship |
| Degree | Thesis (M. Eng) - Asian Institute of Technology, 2011 |