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Using microworlds to study critical infrastructure protection—the effect of incentives on risk management

Tehler, H. LU ; Lindström, J. LU orcid and Lindbom, H. LU (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.

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Please use this url to cite or link to this publication:
author
; and
organization
publishing date
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}},
}