Creating stakeholder value through risk mitigation Measures in the context of disaster management

Minna Räikkönen (Corresponding Author), Riitta Molarius, Kari Mäki, Kim Forssén, Peter Petiet, Albert Nieuwenhuijs

Research output: Contribution to journalArticleScientificpeer-review

Abstract

The resilience of critical infrastructure (CI) to extreme weather events (EWE) is one of the most demanding challenges for all stakeholders in modern society. Although partial risk reduction is feasible through the introduction and implementation of various risk mitigation measures (RMM), decision-makers at all decision-making levels are pressured to find ways to cope with the impending extreme weather and to have a thorough understanding of the EWE impacts on CI. This paper discusses how the value of RMMs can be created and assessed in a stakeholder network. Qualitative research methods, namely literature review and AHP (Analytic Hierarchy Process), were applied as research methods. The paper examines how disaster management and value creation both converge and differ from each other. It also presents a case study on the value of various RMM and the impacts of extreme winter conditions on electricity distribution in Finland. Based on the case study, the most important value criterion was the benefits of the RMM in economic, social, and environmental terms. At a fundamental level, the value of RMM should be expressed not only in terms of money but also in regard to safety, security, societal acceptability, CI dependability, and other typically intangible criteria. Moreover, the results reveal that the interrelationship of value creation and disaster management offers new insights to both approaches.
Original languageEnglish
Article number14
JournalInfrastructures
Volume2
Issue number4
DOIs
Publication statusPublished - 2017
MoE publication typeA1 Journal article-refereed

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disaster management
stakeholder
infrastructure
research method
weather
literature review
electricity
decision making
safety
mitigation measure
winter
economics

Keywords

  • critical infrastructure
  • extreme weather event
  • risk mitigation measure
  • value
  • value creation
  • assessment
  • disaster management
  • stakeholder

Cite this

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title = "Creating stakeholder value through risk mitigation Measures in the context of disaster management",
abstract = "The resilience of critical infrastructure (CI) to extreme weather events (EWE) is one of the most demanding challenges for all stakeholders in modern society. Although partial risk reduction is feasible through the introduction and implementation of various risk mitigation measures (RMM), decision-makers at all decision-making levels are pressured to find ways to cope with the impending extreme weather and to have a thorough understanding of the EWE impacts on CI. This paper discusses how the value of RMMs can be created and assessed in a stakeholder network. Qualitative research methods, namely literature review and AHP (Analytic Hierarchy Process), were applied as research methods. The paper examines how disaster management and value creation both converge and differ from each other. It also presents a case study on the value of various RMM and the impacts of extreme winter conditions on electricity distribution in Finland. Based on the case study, the most important value criterion was the benefits of the RMM in economic, social, and environmental terms. At a fundamental level, the value of RMM should be expressed not only in terms of money but also in regard to safety, security, societal acceptability, CI dependability, and other typically intangible criteria. Moreover, the results reveal that the interrelationship of value creation and disaster management offers new insights to both approaches.",
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Creating stakeholder value through risk mitigation Measures in the context of disaster management. / Räikkönen, Minna (Corresponding Author); Molarius, Riitta; Mäki, Kari; Forssén, Kim; Petiet, Peter; Nieuwenhuijs, Albert.

In: Infrastructures, Vol. 2, No. 4, 14, 2017.

Research output: Contribution to journalArticleScientificpeer-review

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AU - Petiet, Peter

AU - Nieuwenhuijs, Albert

PY - 2017

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AB - The resilience of critical infrastructure (CI) to extreme weather events (EWE) is one of the most demanding challenges for all stakeholders in modern society. Although partial risk reduction is feasible through the introduction and implementation of various risk mitigation measures (RMM), decision-makers at all decision-making levels are pressured to find ways to cope with the impending extreme weather and to have a thorough understanding of the EWE impacts on CI. This paper discusses how the value of RMMs can be created and assessed in a stakeholder network. Qualitative research methods, namely literature review and AHP (Analytic Hierarchy Process), were applied as research methods. The paper examines how disaster management and value creation both converge and differ from each other. It also presents a case study on the value of various RMM and the impacts of extreme winter conditions on electricity distribution in Finland. Based on the case study, the most important value criterion was the benefits of the RMM in economic, social, and environmental terms. At a fundamental level, the value of RMM should be expressed not only in terms of money but also in regard to safety, security, societal acceptability, CI dependability, and other typically intangible criteria. Moreover, the results reveal that the interrelationship of value creation and disaster management offers new insights to both approaches.

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