Evaluating different cost-benefit analysis methods for port security operations

Abstract

Businesses are interested in the trade-off between the cost of risk mitigation and the expected losses of disruptions (Kleindorfer and Saad 2005). Port operations, due to their complexity, have a large impact on the economy, for example, a paralyzed port will have an enormous effect on an area or country. Airports and seaports have an additional complexity when conducting such risk analysis, because there are two key stakeholders with different interests involved in the decision processes concerning the port operation: port operators and security operators (Bichou 2004). In this chapter we focus on the tangible costs and benefits for port stakeholders.