A hierarchical-multiobjective framework for risk management

The management of risk is addressed in this paper within the broad hierarchical-multiobjective framework. Such a framework incorporates the hierarchical nature of the decision-making process; the multiple decision-makers at the various levels of the system's hierarchy; the multiobjective nature of large-scale systems; and the quantitative/empirical and the qualitative/normative/judgmental aspects. Three major topics dominate the methodological components of the paper: hierarchical-multiobjective coordination, risk of extreme events and impact analysis. Various application problems are used as a vehicle to communicate the methodological framework with the readers.