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Portfolio Analysis of Layered Security Measures

Author

Listed:
  • Samrat Chatterjee
  • Stephen C. Hora
  • Heather Rosoff

Abstract

Layered defenses are necessary for protecting the public from terrorist attacks. Designing a system of such defensive measures requires consideration of the interaction of these countermeasures. In this article, we present an analysis of a layered security system within the lower Manhattan area. It shows how portfolios of security measures can be evaluated through portfolio decision analysis. Consideration is given to the total benefits and costs of the system. Portfolio diagrams are created that help communicate alternatives among stakeholders who have differing views on the tradeoffs between security and economic activity.

Suggested Citation

  • Samrat Chatterjee & Stephen C. Hora & Heather Rosoff, 2015. "Portfolio Analysis of Layered Security Measures," Risk Analysis, John Wiley & Sons, vol. 35(3), pages 459-475, March.
    • Handle: RePEc:wly:riskan:v:35:y:2015:i:3:p:459-475
    DOI: 10.1111/risa.12303
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    References listed on IDEAS

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    7. Stewart, Mark G., 2010. "Risk-informed decision support for assessing the costs and benefits of counter-terrorism protective measures for infrastructure," International Journal of Critical Infrastructure Protection, Elsevier, vol. 3(1), pages 29-40.
    8. Peter Phillips, 2009. "Applying Modern Portfolio Theory To The Analysis Of Terrorism. Computing The Set Of Attack Method Combinations From Which The Rational Terrorist Group Will Choose In Order To Maximise Injuries And Fatalities," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(3), pages 193-213.
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    Cited by:

    1. J. S. Busby & B. Green & D. Hutchison, 2017. "Analysis of Affordance, Time, and Adaptation in the Assessment of Industrial Control System Cybersecurity Risk," Risk Analysis, John Wiley & Sons, vol. 37(7), pages 1298-1314, July.
    2. Sarah A. Kusumastuti & Jim Blythe & Heather Rosoff & Richard S. John, 2020. "Behavioral Determinants of Target Shifting and Deterrence in an Analog Cyber‐Attack Game," Risk Analysis, John Wiley & Sons, vol. 40(3), pages 476-493, March.

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