Applying Fuzzy Logic to Risk Assessment and Decision-Making

The Casualty Actuarial Society, Canadian Institute of Actuaries, and the Society of Actuaries' Joint Risk Management Section is pleased to make available a research report exploring areas where fuzzy logic models may be applied to improve risk assessment and risk decision-making. The report was authored by Kailan Shang and Zakir Hossen. This paper explores areas where fuzzy logic models may be applied to improve risk assessment and risk decision-making. It discusses the methodology, framework and process of using fuzzy logic systems for risk management. With the help of practical examples, it is hoped that it will encourage wise application of fuzzy logic models to risk modeling. The report can be accessed by clicking the link. There is also a link to an Excel tool that includes examples of some simple fuzzy logic modelling.