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Systemic Valuation of Strategic Preparedness Through Application of the Inoperability Input‐Output Model with Lessons Learned from Hurricane Katrina

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  • Kenneth G. Crowther
  • Yacov Y. Haimes
  • Gideon Taub

Abstract

The U.S. Department of Homeland Security (DHS) has mandated all regions to “carefully weigh the benefit of each homeland security endeavor and only allocate resources where the benefit of reducing risk is worth the amount of additional cost” (DHS, 2006, p. 64). This mandate illuminates the need to develop methods for systemic valuation of preparedness measures that support strategic decision making. This article proposes an analysis method that naturally emerges from the structure of the inoperability input‐output model (IIM) through which various regional‐ and sector‐specific impact analyses can be cost‐effectively integrated for natural and man‐made disasters. The IIM is described extensively in a companion paper (Lian et al., 2007). Its reliance on data classifications structured by the U.S. Census Bureau and its extensive accounting of economic interdependencies enables us to decompose a risk analysis activity, perform independent assessments, and properly integrate the assessment for a systemic valuation of risk and risk management activity. In this article, we account for and assess some of the major impacts of Hurricanes Katrina and Rita to demonstrate this use of the IIM and illustrate hypothetical, reduced impacts resulting from various strategic preparedness decisions. Our results indicate the capability of the IIM to guide the decision‐making processes involved in developing a preparedness strategy.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:riskan:v:27:y:2007:i:5:p:1345-1364
    DOI: 10.1111/j.1539-6924.2007.00965.x
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    References listed on IDEAS

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    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. Stanley Kaplan & B. John Garrick, 1981. "On The Quantitative Definition of Risk," Risk Analysis, John Wiley & Sons, vol. 1(1), pages 11-27, March.
    3. 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.
    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, 2005. "Managing Risks of Catastrophic and Extreme Events," Risk Analysis, John Wiley & Sons, vol. 25(4), pages 1083-1083, August.
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    Cited by:

    1. Sellevåg, Stig Rune, 2021. "Changes in inoperability for interdependent industry sectors in Norway from 2012 to 2017," International Journal of Critical Infrastructure Protection, Elsevier, vol. 32(C).
    2. Wenping Xu & Zongjun Wang & Liu Hong & Ligang He & Xueguang Chen, 2015. "The uncertainty recovery analysis for interdependent infrastructure systems using the dynamic inoperability input–output model," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(7), pages 1299-1306, May.
    3. Pradeep V. Mandapaka & Edmond Y. M. Lo, 2023. "Assessing Shock Propagation and Cascading Uncertainties Using the Input–Output Framework: Analysis of an Oil Refinery Accident in Singapore," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    4. Kenneth G. Crowther & Yacov Y. Haimes, 2010. "Development of the multiregional inoperability input‐output model (MRIIM) for spatial explicitness in preparedness of interdependent regions," Systems Engineering, John Wiley & Sons, vol. 13(1), pages 28-46, March.
    5. Yaseen, Qazi Muhammad & Akhtar, Rehman & Khalil, Muhammad Kaleem Ullah & Usman Jan, Qazi Muhammad, 2020. "Dynamic inoperability input-output modeling for economic losses estimation in industries during flooding," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    6. Maria Iglesias-Mendoza & Akilu Yunusa-Kaltungo & Sara Hadleigh-Dunn & Ashraf Labib, 2021. "Learning How to Learn from Disasters through a Comparative Dichotomy Analysis: Grenfell Tower and Hurricane Katrina Case Studies," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    7. Oliva, Gabriele & Panzieri, Stefano & Setola, Roberto, 2011. "Fuzzy dynamic input–output inoperability model," International Journal of Critical Infrastructure Protection, Elsevier, vol. 4(3), pages 165-175.
    8. Chiradip Chatterjee & Pallab Mozumder, 2014. "Understanding Household Preferences for Hurricane Risk Mitigation Information: Evidence from Survey Responses," Risk Analysis, John Wiley & Sons, vol. 34(6), pages 984-996, June.
    9. Krista Danielle S. Yu & Raymond R. Tan & Kathleen B. Aviso & Michael Angelo B. Promentilla & Joost R. Santos, 2014. "A Vulnerability Index For Post-Disaster Key Sector Prioritization," Economic Systems Research, Taylor & Francis Journals, vol. 26(1), pages 81-97, March.
    10. Muhammad Abdullah Khalid & Yousaf Ali, 2020. "Economic impact assessment of natural disaster with multi-criteria decision making for interdependent infrastructures," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7287-7311, December.
    11. Cottafava, Dario & Gastaldo, Michele & Quatraro, Francesco & Santhiá, Cristina, 2022. "Modeling economic losses and greenhouse gas emissions reduction during the COVID-19 pandemic: Past, present, and future scenarios for Italy," Economic Modelling, Elsevier, vol. 110(C).

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