November 29, 2004—”Risk Analysis for Extreme Events: Economic Incentives for Reducing Future Losses,” a new report by the Wharton School at the University of Pennsylvania, has been made available online.
The report documents the need for linking risk assessment, risk perception and risk management in order to develop meaningful strategies for dealing with extreme events. The report contains several examples of how building owners and other key stakeholders facing a hurricane or earthquake hazard respond to alternative risk management programs.
The examples are constructed to introduce complicating factors, such as reluctance of most property owners to invest in protective measures, which highlight the importance of public-private partnerships, the key role of building codes and the potential for long-term loans for mitigating the effects of natural and man-made hazards.
