A multi‐attribute Systemic Risk Index for comparing and prioritizing chemical industrial areas

Measures taken to decrease interdependent risks within chemical industrial areas should be based on quantitative data from a holistic (cluster‐based) point of view. Therefore, this paper examines the typology of networks representing industrial areas to formulate recommendations to more effectively protect a chemical cluster against existing systemic risks. Chemical industrial areas are modeled as two distinct complex networks and are prioritized by computing two sub‐indices with respect to existing systemic safety and security risks (using Domino Danger Units) and supply chain risks (using units from an ordinal expert scale). Subsequently, a Systemic Risk Index for the industrial area is determined employing the Borda algorithm, whereby the systemic risk index considers both a safety and security network risk index and a supply chain network risk index. The developed method allows decreasing systemic risks within chemical industrial areas from a holistic (inter‐organizational and/or inter‐cluster) perspective. An illustrative example is given.