Multiobjective Resource Allocation Framework for Risk Management of Large-scale Hierarchical Systems

This paper formulates and solves a general, multiobjective resource allocation framework for the risk management of large-scale hierarchical, systems. This framework captures the hierarchical nature of the large-scale systems and their decision-making process. The multiple decision makers at the various levels of the system hierarchy are discussed. The methods for generating Pareto optimal risk management options for each case of decision makers are derived, by a hierarchical multiobjective approach. The illustrative example demonstrates its effectiveness in hierarchical systems´ risk-based modeling and management.