IDEAS home Printed from https://ideas.repec.org/a/wly/syseng/v8y2005i4p323-341.html
   My bibliography  Save this article

Application of the inoperability input—output model (IIM) for systemic risk assessment and management of interdependent infrastructures

Author

Listed:
  • Kenneth G. Crowther
  • Yacov Y. Haimes

Abstract

Our modern era is characterized by a large‐scale web of interconnected and interdependent economic and infrastructure systems, coupled with threats of terrorism. This paper demonstrates the value of introducing interdependency analysis into various phases of risk assessment and management through application of the Inoperability Input–Output Model (IIM). The IIM estimates the cascading inoperability and economic losses that result from interdependencies within large‐scale economic and infrastructure systems. Based on real data and the Nobel Prize‐winning W. Leontief economic model, the IIM is a computationally efficient, inexpensive, holistic method for estimating economic impacts. Three illustrative case studies are presented. The first and second illustrate how the supply‐ and demand‐side IIM is used to calculate higher‐order effects from attacks to vulnerabilities and implementation of risk management policies in large‐scale economic systems. The final case study illustrates a more general use for interdependency analysis: to evaluate risk management options against multiple objectives. This study calculates a Pareto‐optimal or efficient frontier of solutions by integrating a simplified model of the costs of recovery to the Power sector derived from open‐source data with the IIM. Through these case studies, which use a database from the Bureau of Economic Analysis, we illustrate the value of interdependency analysis in the risk assessment and management process as an integral part of systems engineering. © 2005 Wiley Periodicals, Inc. Syst Eng 8: 323–341, 2005

Suggested Citation

  • Kenneth G. Crowther & Yacov Y. Haimes, 2005. "Application of the inoperability input—output model (IIM) for systemic risk assessment and management of interdependent infrastructures," Systems Engineering, John Wiley & Sons, vol. 8(4), pages 323-341.
    • Handle: RePEc:wly:syseng:v:8:y:2005:i:4:p:323-341
    DOI: 10.1002/sys.20037
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sys.20037
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sys.20037?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yasuhide Okuyama & Geoffrey J. D. Hewings & Michael Sonis, 2004. "Measuring Economic Impacts of Disasters: Interregional Input-Output Analysis Using Sequential Interindustry Model," Advances in Spatial Science, in: Yasuhide Okuyama & Stephanie E. Chang (ed.), Modeling Spatial and Economic Impacts of Disasters, chapter 5, pages 77-101, Springer.
    2. David M. Sharman & Ali A. Yassine, 2004. "Characterizing complex product architectures," Systems Engineering, John Wiley & Sons, vol. 7(1), pages 35-60.
    3. Stanley Kaplan & B. John Garrick, 1981. "On The Quantitative Definition of Risk," Risk Analysis, John Wiley & Sons, vol. 1(1), pages 11-27, March.
    4. Stan Kaplan & Yacov Y. Haimes & B. John Garrick, 2001. "Fitting Hierarchical Holographic Modeling into the Theory of Scenario Structuring and a Resulting Refinement to the Quantitative Definition of Risk," Risk Analysis, John Wiley & Sons, vol. 21(5), pages 807-807, October.
    5. Yacov Y. Haimes, 1991. "Total Risk Management," Risk Analysis, John Wiley & Sons, vol. 11(2), pages 169-171, June.
    6. M. F. Leung & J. R. Santos & Y. Y. Haimes, 2003. "Risk Modeling, Assessment, and Management of Lahar Flow Threat," Risk Analysis, John Wiley & Sons, vol. 23(6), pages 1323-1335, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chenyang Lian & Yacov Y. Haimes, 2006. "Managing the risk of terrorism to interdependent infrastructure systems through the dynamic inoperability input–output model," Systems Engineering, John Wiley & Sons, vol. 9(3), pages 241-258, September.
    2. Hairui Wei & Ming Dong & Shuyu Sun, 2010. "Inoperability input‐output modeling (IIM) of disruptions to supply chain networks," Systems Engineering, John Wiley & Sons, vol. 13(4), pages 324-339, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kenneth G. Crowther & Yacov Y. Haimes & Gideon Taub, 2007. "Systemic Valuation of Strategic Preparedness Through Application of the Inoperability Input‐Output Model with Lessons Learned from Hurricane Katrina," Risk Analysis, John Wiley & Sons, vol. 27(5), pages 1345-1364, October.
    2. Yacov Y. Haimes, 2012. "Systems‐Based Guiding Principles for Risk Modeling, Planning, Assessment, Management, and Communication," Risk Analysis, John Wiley & Sons, vol. 32(9), pages 1451-1467, September.
    3. Maria Leung & James H. Lambert & Alexander Mosenthal, 2004. "A Risk‐Based Approach to Setting Priorities in Protecting Bridges Against Terrorist Attacks," Risk Analysis, John Wiley & Sons, vol. 24(4), pages 963-984, August.
    4. Michael J. Pennock & Yacov Y. Haimes, 2002. "Principles and guidelines for project risk management," Systems Engineering, John Wiley & Sons, vol. 5(2), pages 89-108.
    5. Yacov Y. Haimes & Kenneth Crowther & Barry M. Horowitz, 2008. "Homeland security preparedness: Balancing protection with resilience in emergent systems," Systems Engineering, John Wiley & Sons, vol. 11(4), pages 287-308, December.
    6. Yacov Y. Haimes & Clyde C. Chittister, 2012. "Risk to cyberinfrastructure systems served by cloud computing technology as systems of systems," Systems Engineering, John Wiley & Sons, vol. 15(2), pages 213-224, June.
    7. Yacov Y. Haimes, 2011. "On the Complex Quantification of Risk: Systems‐Based Perspective on Terrorism," Risk Analysis, John Wiley & Sons, vol. 31(8), pages 1175-1186, August.
    8. Yacov Y. Haimes, 2009. "On the Complex Definition of Risk: A Systems‐Based Approach," Risk Analysis, John Wiley & Sons, vol. 29(12), pages 1647-1654, December.
    9. Joost R. Santos & Lucia Castro Herrera & Krista Danielle S. Yu & Sheree Ann T. Pagsuyoin & Raymond R. Tan, 2014. "State of the Art in Risk Analysis of Workforce Criticality Influencing Disaster Preparedness for Interdependent Systems," Risk Analysis, John Wiley & Sons, vol. 34(6), pages 1056-1068, June.
    10. Joanna Resurreccion & Joost R. Santos, 2012. "Multiobjective Prioritization Methodology and Decision Support System for Evaluating Inventory Enhancement Strategies for Disrupted Interdependent Sectors," Risk Analysis, John Wiley & Sons, vol. 32(10), pages 1673-1692, October.
    11. Yacov Y. Haimes & Stan Kaplan & James H. Lambert, 2002. "Risk Filtering, Ranking, and Management Framework Using Hierarchical Holographic Modeling," Risk Analysis, John Wiley & Sons, vol. 22(2), pages 383-397, April.
    12. James H. Lambert & Rachel K. Jennings & Nilesh N. Joshi, 2006. "Integration of risk identification with business process models," Systems Engineering, John Wiley & Sons, vol. 9(3), pages 187-198, September.
    13. Matthew H. Henry & Yacov Y. Haimes, 2009. "A Comprehensive Network Security Risk Model for Process Control Networks," Risk Analysis, John Wiley & Sons, vol. 29(2), pages 223-248, February.
    14. Amro Nasr & Oskar Larsson Ivanov & Ivar Björnsson & Jonas Johansson & Dániel Honfi, 2021. "Towards a Conceptual Framework for Built Infrastructure Design in an Uncertain Climate: Challenges and Research Needs," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    15. James H. Lambert & Benjamin L. Schulte & Priya Sarda, 2005. "Tracking the complexity of interactions between risk incidents and engineering systems," Systems Engineering, John Wiley & Sons, vol. 8(3), pages 262-277, September.
    16. Yacov Y. Haimes, 2006. "On the Definition of Vulnerabilities in Measuring Risks to Infrastructures," Risk Analysis, John Wiley & Sons, vol. 26(2), pages 293-296, April.
    17. Hong Sun & Fangquan Yang & Peiwen Zhang & Yunxiang Zhao, 2023. "Flight Training Risk Identification and Assessment Based on the HHM-RFRM Model," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    18. Ioanna Ioannou & Jaime E. Cadena & Willy Aspinall & David Lange & Daniel Honfi & Tiziana Rossetto, 2022. "Prioritization of hazards for risk and resilience management through elicitation of expert judgement," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 112(3), pages 2773-2795, July.
    19. Yacov Y. Haimes & Alfred Anderegg, 2015. "Sequential Pareto‐Optimal Decisions Made During Emergent Complex Systems of Systems: An Application to the FAA NextGen," Systems Engineering, John Wiley & Sons, vol. 18(1), pages 28-44, January.
    20. Clyde Chittister & Yacov Y. Haimes, 2010. "Harmonizing high performance computing (HPC) with large‐scale complex systems in computational science and engineering," Systems Engineering, John Wiley & Sons, vol. 13(1), pages 47-57, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:syseng:v:8:y:2005:i:4:p:323-341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1520-6858 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.