A system approach to management and catastrophic risks
There are two main strategies in dealing with rare and dependent catastrophic risks: the use of risk reduction measures (prepardness programs, land use regulation, etc.) and the use of risk spreading mechanisms, such as insurance and financial markets. These strategies are not separable. The risk reduction measures increase the insurability of risks. On the other hand, the insurance policies on premiums may enforce risk reduction measures. The role of system approaches, models and accompanying decizion support systems becomes of critical importance for managing of catastrophic risks. The paper discusses some methodological challenges concerning the design of such models and decizion support systems.
Bibliographic Reference: Article: European Journal of Operational Analysis, 1998
Record Number: 199910359 / Last updated on: 1999-03-12
Original language: en
Available languages: en