Members' Reports & Publications
By Dr. Astrid Zwick and Tuga Alaskary
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When making economic decisions, planning new infrastructure or developing business plans, climate and disaster risks can have a negative impact on all values created. To safeguard investments, risk management must rest on a comprehensive understanding of risk, drawing on risk data and risk modelling.
Risk models quantify risk through simulation of the magnitude, intensity, frequency and location of many possible events to determine the probable amount of damage, harm or financial loss. Output metrics are combined with judgment to make decisions which can protect individuals, businesses and communities.
At the InsuResilience Global Partnership, the question of risk is always at the forefront of our minds. For 40 years catastrophe risk modelling has been widely used to inform decisions on large-scale risk transfer. The insurance sector has made quantitative risk understanding a survival skill. Today its inputs and methodologies are equally applicable to prioritising public investment in risk prevention. They are increasingly adapted for application in humanitarian finance. More and more, development agencies and sovereigns are engaging with us to advance a shared understanding of risk.
27th November, 2020