Using microworlds to study critical infrastructure protection—the effect of incentives on risk management
(2018) 28th International European Safety and Reliability Conference, ESREL 2018 p.1865-1872- Abstract
A computer simulated microworld was used to study risk management in a critical infrastructure context. 36 students assumed the role of an electric distribution company Chief Executive Officer (CEO) making decision on how to spend resources between investments in risk reduction and other investments. We studied the effect of differences in terms of the incentives to invest in risk reduction and the extent that the participants had access to a risk assessment. We found that both independent variables influenced the total resources spent on risk reduction and total losses due to storms. If the company had to bear a larger part of the total losses due to a storm their propensity to invest in risk reduction increased. In addition, if the... (More)
A computer simulated microworld was used to study risk management in a critical infrastructure context. 36 students assumed the role of an electric distribution company Chief Executive Officer (CEO) making decision on how to spend resources between investments in risk reduction and other investments. We studied the effect of differences in terms of the incentives to invest in risk reduction and the extent that the participants had access to a risk assessment. We found that both independent variables influenced the total resources spent on risk reduction and total losses due to storms. If the company had to bear a larger part of the total losses due to a storm their propensity to invest in risk reduction increased. In addition, if the participants were provided with a simple risk assessment to support their decisions they invested more resources in risk reduction, and they were also more successful in limiting the total losses due to storms.
(Less)
- author
- Tehler, H. LU ; Lindström, J. LU and Lindbom, H. LU
- organization
- publishing date
- 2018
- type
- Chapter in Book/Report/Conference proceeding
- publication status
- published
- subject
- host publication
- Safety and Reliability - Safe Societies in a Changing World - Proceedings of the 28th International European Safety and Reliability Conference, ESREL 2018
- editor
- van Gulijk, Coen ; Haugen, Stein ; Barros, Anne ; Vinnem, Jan Erik and Kongsvik, Trond
- pages
- 8 pages
- publisher
- CRC Press/Balkema
- conference name
- 28th International European Safety and Reliability Conference, ESREL 2018
- conference location
- Trondheim, Norway
- conference dates
- 2018-06-17 - 2018-06-21
- external identifiers
-
- scopus:85058100712
- ISBN
- 9780815386827
- DOI
- 10.1201/9781351174664-233
- language
- English
- LU publication?
- yes
- id
- 8cc8872e-613d-4050-930c-f46abe975572
- date added to LUP
- 2019-01-02 08:59:17
- date last changed
- 2022-04-25 20:17:31
@inproceedings{8cc8872e-613d-4050-930c-f46abe975572, abstract = {{<p>A computer simulated microworld was used to study risk management in a critical infrastructure context. 36 students assumed the role of an electric distribution company Chief Executive Officer (CEO) making decision on how to spend resources between investments in risk reduction and other investments. We studied the effect of differences in terms of the incentives to invest in risk reduction and the extent that the participants had access to a risk assessment. We found that both independent variables influenced the total resources spent on risk reduction and total losses due to storms. If the company had to bear a larger part of the total losses due to a storm their propensity to invest in risk reduction increased. In addition, if the participants were provided with a simple risk assessment to support their decisions they invested more resources in risk reduction, and they were also more successful in limiting the total losses due to storms.</p>}}, author = {{Tehler, H. and Lindström, J. and Lindbom, H.}}, booktitle = {{Safety and Reliability - Safe Societies in a Changing World - Proceedings of the 28th International European Safety and Reliability Conference, ESREL 2018}}, editor = {{van Gulijk, Coen and Haugen, Stein and Barros, Anne and Vinnem, Jan Erik and Kongsvik, Trond}}, isbn = {{9780815386827}}, language = {{eng}}, pages = {{1865--1872}}, publisher = {{CRC Press/Balkema}}, title = {{Using microworlds to study critical infrastructure protection—the effect of incentives on risk management}}, url = {{http://dx.doi.org/10.1201/9781351174664-233}}, doi = {{10.1201/9781351174664-233}}, year = {{2018}}, }