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Decentralized risk management for strategic preparedness of critical infrastructure through decomposition of the inoperability input–output model

Kenneth G. Crowther

“[…] decomposition of risk management of large - scale systems is not simple, due in large part to the complex interdependencies that interconnect the critical infrastructure component systems. Strong interdependencies between critical infrastructure sectors result in a condition where some risks are externalized. In other words, the real size of risk (i.e., probability and magnitude of adverse consequences) to a region, sector, or corporation is not completely accounted for in its calculations because some of the risks are not directly of internal concern. Thus, due to uncounted externalities, a completely decentralized risk management approach could result in unforeseen suboptimal social invest­ment strategies”. The paper formulates a strategic preparedness problem that is an abstraction of the risk problem of the United States. The article states that “[…] decomposition provides a means to construct a more flexible modeling paradigm, and to advance the ability to integrate multiple disparate data sources while still preserving the overall optimality of the solution”.

kritis/overview.txt · Last modified: 2015/03/24 15:32 (external edit)