By Jeffrey Keisler, on 25 May 2023
I have the wonderful honour of being a MAPS Fellow at UCL. This came about through conversations with my friend and colleague (and now host), Prof. Gianluca Pescaroli. Although we bonded through discussions about used vinyl records, I will instead talk about our work.
My background is in decision analysis, a field that takes quantitative approaches involving probability, utility, and decision trees to identify the overall risks and benefits associated with actions under uncertainty. In the context of resilience, there is much uncertainty but most of the focus is on trying to improve systems.
Thinking of information as a separate dimension of protection–because information helps people make the decisions that lead to optimal recovery–can lead to lower cost ways to bring about greater resilience. But improving information itself is costly. It can be tricky to figure out which information-related efforts are worthwhile. There are different ways to bring information into a decision process.
By taking a concept from decision analysis, value of information (VOI), we can take a more strategic approach. We can actually quantify the benefit of different possible efforts. Basically, we characterise the mix of potential consequences of making the best possible choice given a limited amount of information and compare this with what would happen if the same decisions were made with the benefit of more information. With this analysis, we can improve resilience by making investments to ensure that relevant information will be available after disruptions. These can be just as beneficial as investments in physical assets which can also minimise the damage of disruptions.
In managing resilience, we anticipate possible disruptions, and consider what can happen before, during, and after them. With a VOI approach, we also consider what information will be available for which decisions before, during, and after disruptions, and then can take steps to make that information available during those periods. Examples include purchasing information, building better information systems and communication systems, performing experiments, or potentially buying time for information to arrive by speeding decisions implementation and freezing damage during the time we’re waiting for information.
During my time at UCL I am meeting with a number of researchers in IRDR to apply this idea efficiently to problems in several important areas where we are studying resilience. These include healthcare, natural hazards, and technological or business crises. With these results, we can look toward building more sophisticated analyses or refining the planning process to flesh out the informational dimension. The researchers here have backgrounds in quantitative areas such as risk analysis and systems analysis as well as in the social sciences and in the physical sciences. There are many different types of data and phenomena to consider as we pull together these models. My hope is this will lay the groundwork for future valuable projects and continued collaboration.
MAPS Fellow Jeffrey Keisler is a Professor in the College of Management at University of Massachusetts Boston, where he specialises in Decision and Risk Analysis. He thanks the welcoming and wonderful group at IRDR for their making this visit such a special experience.