Investing in transport security solutions: using the quantitative risk assessment (QRA) approach
Author: Urciuoli, Luca
Source: International Journal of Risk Assessment and Management, Volume 15, Number 4, September 2011 , pp. 275-298(24)
Publisher: Inderscience Publishers
Abstract:Security has become a major concern for logistics and transportation managers. Statistics showing increasing trends in cargo theft, especially in road operations, as well as upcoming mandatory programs issued by EU and US governments, are requiring operators to increase their security degrees; i.e., by introducing new security routines, managerial strategies or by investing in technological systems. Thus, the new challenge faced by managers is to choose among wide sets of security solutions by trading off costs and impacts on security. Hence, this paper presents a methodology that takes advantage of the quantitative risk assessment (QRA) approach to compare costs and benefits, in form of risk reductions, of security solutions for road transport operations against theft. Subjective interpretations, from a Swedish group of security experts, are exploited to generate random data from triangular distributions and simulate their impact with Monte Carlo techniques. Finally, pros and cons of the methodology as well as future research are discussed.
Document Type: Research Article
Affiliations: Department of Industrial Management and Logistics, Engineering Logistics, Lund University, Ole Römers Väg, 1, 221 00 Lund, Sweden
Publication date: September 1, 2011