Multidimensional Risk Analysis

Adiel Teixeira Almeida, Cristiano Alexandre Virgínio Cavalcante, Marcelo Hazin Alencar, Rodrigo José Pires Ferreira, Adiel Teixeira Almeida-Filho and Thalles Vitelli Garcez
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Adiel Teixeira Almeida: Universidade Federal de Pernambuco
Cristiano Alexandre Virgínio Cavalcante: Universidade Federal de Pernambuco
Marcelo Hazin Alencar: Universidade Federal de Pernambuco
Rodrigo José Pires Ferreira: Universidade Federal de Pernambuco
Adiel Teixeira Almeida-Filho: Universidade Federal de Pernambuco
Thalles Vitelli Garcez: Universidade Federal de Pernambuco

Chapter Chapter 4 in Multicriteria and Multiobjective Models for Risk, Reliability and Maintenance Decision Analysis, 2015, pp 161-213 from Springer

Abstract: Abstract: Accidents involve critical consequences that require an appropriate and efficient form of risk management. A multidimensional risk analysis allows a broader view. MCDM/A approaches enable more consistent decision-making, taking into account the DM’s rationality (compensatory or non-compensatory), DM’s behavior regarding risk (prone, neutral or averse) and the uncertainties inherent in the risk context. This chapter presents numerical applications illustrating the use of multicriteria models in two different contexts: a natural gas pipeline and an underground electricity distribution system. Two different MCDM/A approaches are considered: MAUT (Multiattribute Utility Theory) and the ELECTRE TRI outranking method. In the numerical applications, MCDM/A approach steps for building decision models are presented: identifying hazard scenarios, estimating the set of payoffs, eliciting the MAU function (Multi-attribute Utility function), computing the probability function of consequences and estimating multidimensional risk. Loss functions are introduced in the models to calculate the probability distribution functions over the multiple criteria such as impact on humans, and environmental and financial losses. Therefore, Decision Theory concepts are applied to estimate risk in industrial plants and modes of transportation. Finally, other decision problems related to multidimensional risk analysis, using MCDM/A, are considered in different contexts, such as: power electricity systems, natural hazards, risk analysis on counter-terrorism, nuclear power plant.

Keywords: Decision Maker; Utility Function; Risk Management; Utility Theory; Multicriteria Decision (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/978-3-319-17969-8_4

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