The unpredictable natural disasters’ effect on different industries and the wrong decisions that may follow the occurrence of such disasters may be due to: inaccurate forecasting of weather, inaccurate planning and risk analysis, also the governments and organizations over confidence in their ability to take decision and over come the risks. Also, insufficient financial support and miscommunication results in higher civil and human loss.
As we examine the consequences of natural disasters several issues must be considered: * Many countries lack the knowledge, capacity and resources to deal with natural disasters. After a disaster the public sector is often paralyzed by damaged infrastructure and unable to cover the costs of emergency and relief efforts, let alone reconstruction work. * Lack of overall risk planning and investment in physical resilience measures, with too much focus on post-disaster response, leads to increased loss of life, suffering and damage.
People in poor countries are generally more exposed to natural disasters, particularly through a higher dependency on agriculture and increased vulnerability to the natural environment. * Insurance penetration is high in developed countries. In lesser developed entries, the availability of insurance is limited and premiums are often not affordable. With less coverage, impacts from natural disasters can derail economic growth.
There are several reasons for the increased vulnerability of societies to natural disasters: * Population growth: Between 1950 and 2010, world population grew from 2. 5 to 6. 9 billion,2 putting more people in harms way. * Location: Population growth has occurred in areas more prone to natural disasters, such as coastal areas and riverbanks. * arbitration: Poor urban planning, zoning and construction exacerbate the effects of natural disasters * Value: Economic velveteen brings higher asset values, thereby increasing the possible financial loss.
Climate change: While there is not yet consensus in the scientific community whether and to what extent climate change increases the number and severity Of climatic events,5 there are several prominent studies suggesting that there exists a causal relationship, increasing risk uncertainty. Ill. List of Alternative course of actions: The unpredictable natural disasters and its consequences affect masses of people and require involvement of various sectors of country organizations to achieve ultimately successful results.
Effective disaster management system should be in place which includes disaster prediction, disaster warning, disaster management and disaster relief. Implementation of the following measures can have a significant impact on the extent of suffering after a natural disaster: 1 . Clear vision for dealing with natural disasters. To increase knowledge and awareness of the population at large, the private sector and policy-makers to achieve behavior change. 2. Understanding the risk and mitigate risks through a variety of methods using both public and private means. 3.
Enhanced physical resilience as a preventative step to reduce risk by hysterical measures, This is the only way to directly reduce the loss Of life and number of people affected. 4. Financial preparedness to reduce the long-term impact on economic development at the macro level as evidenced IV. Evaluation of Alternatives 1. Vision for dealing with natural disasters A vision of how various means of risk management could work together through “backward imaging”. Taking realistic natural disaster scenarios and apply best practice recommendations to develop a vision for the future. Ochs is on risk transfer solutions and enhanced risk resiliency.
1. 1 Data Comprehensive data is crucial throughout the natural disaster timeline for increasing awareness, finding effective resilience measures, early warning systems, efficient disaster response and resilient rebuilding. Capturing and mapping: The international community with local cooperation will implement a long-term programmer of global observation data. This data will include satellite observations and ground-based Observations to allow for В«trustingВ» of the satellite data.
Risk identification and assessment: Using open-access catastrophe modeling architecture and risk models created by the insurance industry and academia tit funding from UNFROCK adaptation funds, insurers and other risk pooling mechanisms will be able to assess risk and characterize the uncertainties surrounding their estimates. 1. 2 Awareness With good data, the public understands the need for preparation and risk reducing measures. Governments, the private sector and the media build awareness of risks and risk-mitigation principles at national, regional, and community levels.
School awareness programmer: Schools play an important role. Children from a young age must understand the perils to which their communities are exposed and the appropriate response behaviors. Community awareness: Education in the community is required to ensure that awareness building continues in ad alt life. Communication: The media will run long-term campaigns on regional natural catastrophe risks, highlighting the benefit Of resilience and risk pooling measures.
Multiple channels should be used, using resonating messaging to counter psychological tendencies of avoidance and denial, and foster behavioral change. 1. 3 Planning and prevention Planning and prevention require long lead times, especially for physical resilience projects. These large-scale projects and local community response Lana are both important to community awareness. Coordinating these measures to ensure effectiveness and efficient use of funds requires a central government figure, called in this report a “country risk officer.
Country risk officers: Tasked with keeping up-to-date risk and asset data, they coordinate pre-disaster mitigation measures, such as building resilience, with financial preparedness Large-scale defense: Using risk maps, large-scale peril defense programmer are conducted in areas of high value or national importance, potentially contributed to by UNFROCK adaptation funds. Community-level defense: With awareness of risk, communities can work together on local measures, particularly where large-scale defenses are not possible.
This may include avoiding construction in peril-prone areas,or making buildings temporary or peril-resilient in such areas. Individual-level defense: Some individuals and businesses may choose to adapt their properties, as they will see lower insurance premiums as a consequence if insurance premiums reflect risk. Assign liability in advance: Risk pooling organizations are able to reduce their prices because they have contract certainty due to clear liability laws enacted n advance. 1. 4 Risk transfer There are various options for risk management – avoidance, reduction, transfer or retention.
Risk transfer is the underlying tenet for insurance markets, passing a liability onto another party (spreading the risk). Risk pooling is vital to the recovery of individuals, firms and economies following a natural disaster. 1. 5 During an event Actions taken immediately before and during an event are crucial for limiting impact on lives and livelihoods. These actions include last minute resilience measures, early warning systems, evacuation plans and efficient response measures. Early warning prior to an event: For some events (e. G. , flooding, tropical cyclones and tsunamis) early warning is possible; others are more of a surprise (e. . , earthquakes).
Where early warning is possible, meteorological offices and other peril monitoring services send warning messages to a list of stakeholders for broader dissemination, and also post information on their websites. Mobile warning cascade: Peril-prone regions have free mobile technology early warning systems that cascade a series of warnings. Fast-evacuation warnings: Local police and coastguard remove people from high-risk areas (e. G. Off beaches in a tsunami). Prior emergency drills have informed all stakeholders what they are expected to do.
The evacuation is orderly. 1. 6 Response The response phase begins after the post-disaster situation has stabilized and there is no longer imminent threat of loss of human life. The response phase focuses on restoring law and order, ensuring a secure environment and distributing resources and supplies. Order and control: Restoring law and order is crucial to an environment in which appropriate response measures can be taken. If civil society and security deteriorate it will be more difficult or impossible to distribute sources to those in need, unnecessarily prolonging suffering.
Quick damage assessment: Satellite images provide an initial quick overview Of the damage. Liquidity pooling schemes pay out: If the event has triggered the pooling policies, funds, commodities and equipment are transferred within 15 days (or more quickly for critical equipment). Use of funds: The country risk officer implements the catastrophe response plan. Funds from pooling schemes are deployed to purchase necessary supplies. 1. 7 Recovery The recovery phase begins once the post-disaster situation has stabilized enough for activities focused on returning people and the economy to predigested or better levels.
Recovery involves getting people and communities back on their feet, and ideally in a better position than before the disaster. Deploying loss adjusters: Using satellite and aerial photography loss adjusters decide whether they can pay claims remotely. There are a sufficient number of loss adjusters, provided by both public and private sectors. Resilient and sustainable rebuilding: The country risk officer issues guidelines on peril-resilient rebuilding. All new construction conforms to the code. Non- compliance results in non-payment of future risk pooling claims or building condemnation.
Managed retreat: Some regions will not be re-populated to make green spaces or other mitigation schemes. The difficult question of whether to turn over damaged homes to these spaces is an important policy issue. Community adaptation measures: The opportunity to adapt regions will be taken at the time of large-scale rebuilding (e. G. , sustainable urban drainage). This is a unique opportunity to re-design for the future. Lessons learned: All stakeholders devote time and resources to learn lessons room the disaster about such things as evacuation processes, risk models, data, building performance under stress, etc.
Results are freely disseminated for the benefit of the international community. Micromanage, structured loans and Micronesians: These financial products provide liquidity for affected individuals, initiating faster recovery and promoting self-sufficiency. 2. Understanding risk * Understanding the hazards and risks a community is exposed to is one Of the prerequisite recommendations in this report. Continued advancement in this understanding will allow for more focused and improved solutions across he disaster timeline. Ensuring that this knowledge is cascaded down to the local level creates awareness and initiates responsibility.
Where possible, effective disaster preparedness and risk mitigation must start at an individual and community level. There are many stakeholders involved in building community awareness, Understanding how to use these channels effectively, often in combination with the media, will increase risk understanding and awareness Capturing risk data’s Establishing reliable data is the first step and involves multiple stakeholders. There are numerous gaps in the data that has been captured on multiple littorals and in various data sets around the world.
Ra sing awareness Raising awareness is needed at the local community level. Different channels of communications that can reach individuals locally include the use of media, education, and community involvement. Small behavioral adaptations can result in large reductions in the impact to society. For leaseholders countries with high casualty rates, the importance of awareness understanding various need factors is critical. Organizations such as the Red Cross have significant expertise and capacity to help in countries where institutional capacity is not available.
Physical Resilience Increasing physical resilience is an ongoing process for ensuring that structures, from large-scale infrastructure to individual buildings, are better prepared for natural disasters. This is an iterative process as cities and regions regenerate themselves, and as knowledge, technology and materials improve. Increasing resilience should be a priority for policy-makers to reduce loss of life and lessen economic loss. Physical resilience requires long-term planning at the national, regional, and local levels; between local governments; with rural and urban areas; and cross departments and agencies.
Natural disasters know no boundaries and they cross government jurisdictions. 4. Financial preparedness Financial preparedness is a key element in a country’s overall resilience to natural disasters. It can reduce the long-term impact on economic development at the macro level. At the micro level it provides financial protection to individuals and businesses to reduce the impact on livelihoods. In addition to a functioning public policy and regulatory framework, insurance development depends on factors that define a country broader development strategy. Micronesians
Micronesians, which protects low-income people from specific risks, is typically characterized by low premiums reflecting the pricing of focused coverage. Low-income people are often exposed to risks due to the nature of their livelihoods, for example, subsistence farming, or because they live In disaster-prone areas. Distribution High volume is a key to the insurance business model. Therefore, microsurgery need to partner with organizations With ties to the communities that they seek to serve to gain access to and build trust with potential customers. Financial literacy Explaining how insurance works can be difficult.
It is also difficult to build trust with potential customers because the benefits of insurance are realized in the future. V. Conclusion and recommendations: Conclusion * Natural disasters affect all countries. However, in lesser-developed countries natural disasters cause disproportionate impact, killing thousands and threatening the livelihoods of those who survive, The variations in these effects between countries in there is a need to transfer knowledge, mobile financial resources and strengthen institutional capacity for natural disaster management in proactive and sustainable ways.
However, there have been large variations in their societal impact, particularly on developing countries. Much work needs to be done at local, regional, national international level to improve preparation and response through enhanced resiliency and risk mitigation Accordingly, to reduce the impact of natural disasters, a multiculturalism approach is needed. At the heart of the recommendations is a desire to reduce the overall impact on society. Recommendations: To reduce the impact of natural disasters, a multiculturalism approach is needed. At the heart of the recommendations is a desire to reduce the overall impact on society.
The success of that effort will depend on a number of factors: Raising Awareness Building awareness brings recognition of risk and initiates behavioral change. To begin the process one needs to collect appropriate data on risks, which needs to be made publicly available. Communicating the message in a way that informs the affected public of the risks they face is needed to motivate an increase in resilience and preparedness. Enhancing Resiliency Reducing risk through enhancing resilience requires an integrated planning process to make sure that structures are resilient to current and future hazards.
Financial Preparedness Financial preparedness includes the concept of risk transfer to protect people’s livelihoods. Traditional insurance using risk-based pricing free from political intervention is an important part of the toolkit to enable faster recovery and reconstruction. Alternative preparedness measures include Micronesians; catastrophe bonds (cat bonds), which in parametric form can provide fast liquidity in times of crisis; and country level funds to help reduce public sector liability. Public Sector The public sector role depends on a country capacity to mitigate and respond to natural disasters.