Assessing economic impacts of crises: A decision-support approach to long-term strategic planning

Minna Räikkönen, Karoliina Pilli-Sihvola, Susanna Kunttu, Jussi Yliaho, Markus Jähi, G. Zuccaro, D. Del Cogliano

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

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 from the European Community's Seventh Framework Programme.
Original languageEnglish
Title of host publicationProceedings of the IX international conference on Risk analysis and hazard mitigation. Brebbia, C.A. (ed.)
Place of PublicationAshurst, UK
Pages229-241
DOIs
Publication statusPublished - 2014
MoE publication typeA4 Article in a conference publication

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Keywords

  • cost
  • benefit
  • crisis
  • decision-making
  • mitigation measure
  • economic impact

Cite this

Räikkönen, M., Pilli-Sihvola, K., Kunttu, S., Yliaho, J., Jähi, M., Zuccaro, G., & Del Cogliano, D. (2014). Assessing economic impacts of crises: A decision-support approach to long-term strategic planning. In Proceedings of the IX international conference on Risk analysis and hazard mitigation. Brebbia, C.A. (ed.) (pp. 229-241). https://doi.org/10.2495/RISK140201