WIT Press


Assessing The Economic Impacts Of Crises: A Decision-support Approach To Long-term Strategic Planning

Price

Free (open access)

Paper DOI

10.2495/RISK140201

Volume

47

Pages

13

Page Range

229 - 241

Published

2014

Size

416 kb

Author(s)

M. Räikkönen, K. Pilli-Sihvola, S. Kunttu, J. Yliaho, M. Jähi G. Zuccaro & D. Del Cogliano

Abstract

The assessment of economic impacts of crises and risk reduction generated by different mitigation measures is a multidimensional problem and often a challenging task. A major issue hindering the process is a lack of structured information. In particular, intangible losses are difficult to evaluate monetarily. Furthermore, the uncertainty related to the operational environment is difficult to estimate. This paper proposes a practical economic approach that aims at assessing different measures to mitigate the impacts of the crises. The purpose is to contribute to the understanding of the decision-making related to crisis management so that the goals of the decisions can be reached. The approach is mainly aimed at enhancing decision-making on a strategic level and at supporting crisis-management training. Additionally, a software tool based on the approach will be developed to make the assessment procedure usable in practice. The approach is demonstrated in two pilot cases: extreme winter storm in North of Finland and a major earthquake in Italy. The paper is based on research carried out in the CRISMA integration project which is funded by the European Community’s Seventh Framework Programme. Keywords: cost, benefit, crisis, decision-making, mitigation measure, economic impact.

Keywords

cost, benefit, crisis, decision-making, mitigation measure, economic impact.