A risk assessment algorithm based on utility theory

  • Authors:

  • Degui Yao;Bin Lu;Fengren Fu;Yong Ji

  • Affiliations:

  • Henan Electric Power Research Institute, Zhengzhou, Henan, China;Zhengzhou Information Science and Technology Institute, Zhengzhou, Henan, China;Henan Xuchang Power Supply Company Xuchang, Xuchang, Henan, China;Henan Electric Power Research Institute, Zhengzhou, Henan, China

  • Venue:
  • ICIC'10 Proceedings of the Advanced intelligent computing theories and applications, and 6th international conference on Intelligent computing
  • Year:
  • 2010

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Abstract

Expectation of loss is adopted to describe the potential risk of an information system in conventional risk assessment methods which can not reflect the nonlinear property of loss. To solve the problem, this paper proposes a loss utility function and a possibility utility function to describe the loss and possibility of risk respectively, together with the concept of risk utility. With AHP (analytic hierarchy process) and risk utility combined together, this paper manages to conduct a relatively comprehensive risk assessment of the system and demonstrates its effectiveness in an example in practice.