An Indicator Framework to Assess the Vulnerability of Industrial Sectors against Indirect Disaster Losses

Natural and man-made hazards may affect industrial production sites by both direct losses (due to physical damage to assets and buildings) and indirect losses (production losses). Indirect losses, e.g. from production downtimes, can exceed direct losses multiple times. Thus, the vulnerability of industrial sectors to indirect losses is an important component of risk and its determination is an important part within risk analysis. In this paper a conceptual indicator framework is presented which allows to assess the indirect vulnerability of industrial sectors to different types of disasters in a quantitative manner. The results are useful for information sharing and decision making in crisis management and emergency planning (mitigation measures, business continuity planning), since the developed indicator system helps to take the complex phenomenon of industrial vulnerability and the underlying interdependencies into account. Besides the identification and conceptual motivation of the indicators, methodical aspects such as standardization, weighting and aggregation are addressed.