ABSTRACT
This chapter introduces literature foundational to general systems theory, risk and decision theory, and their application to engineering risk management. Modern literature on engineering systems and risk has only begun to address the complexities and multidisciplinary nature of this topic. However, foundational perspectives on ways to view this space exist in the literature and in the scientific community. The literature on risk and decision theory is vast. Its intellectual foundations are deeply rooted in mathematics and economics. Risk and decision theory has been a field of study for at least 300 years and one with a rich history of cross-domain applications. The intellectual groundwork on general systems theory and modern decision theory has natural extensions and applications to managing risks in engineering systems. The quantitative risk assessment approach emphasized the importance of scenario-driven risk analyses and the integration of probability and consequence measures with cost-benefit-risk trade-offs to derive optimal risk reduction choices among competing courses of action.
