Risk‐based thinking for extreme events: What do terrorism and climate change have in common?

Stewart, M

Risk‐based thinking for extreme events: What do terrorism and climate change have in common?

Stewart, M

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Publisher:: Wiley
Publication Type:: Journal Article
Citation:: Risk Management and Insurance Review, 2023, 26, (4), pp. 467-484
Issue Date:: 2023-12

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Field	Value	Language
dc.contributor.author	Stewart, M https://orcid.org/0000-0001-6887-6533
dc.date.accessioned	2024-03-05T07:13:55Z
dc.date.available	2024-03-05T07:13:55Z
dc.date.issued	2023-12
dc.identifier.citation	Risk Management and Insurance Review, 2023, 26, (4), pp. 467-484
dc.identifier.issn	1098-1616
dc.identifier.issn	1540-6296
dc.identifier.uri	http://hdl.handle.net/10453/176136
dc.description.abstract	<jats:title>Abstract</jats:title><jats:p>Terrorism and climate change debates are often characterized by worst‐case thinking, cost neglect, probability neglect, and avoidance of the notion of acceptable risk. This is not unexpected when dealing with extreme events. However, it can result in a frightened public, costly policy outcomes, and wasteful expenditures. The paper will describe how risk‐based approaches are well suited to infrastructure decision‐making for extreme events. Risk management concepts will be illustrated with current research of risk‐based assessment of climate adaptation engineering strategies including designing new houses in Australia subject to cyclones and extreme wind events. It will be shown that small improvements to house designs at a one‐off cost of several thousand dollars per house can reduce damage risks by 70%–80% and achieve billions of dollars of net benefit for community resilience—this helps offset some the predicted adverse effects of climate change for a modest cost. The effect of risk perceptions, insurance, and economic incentives is explored for another climate adaption measure. The paper will also highlight that there is much to be optimistic about the future, and in the ability of risk‐based thinking to meet many challenges.</jats:p>
dc.language	en
dc.publisher	Wiley
dc.relation.ispartof	Risk Management and Insurance Review
dc.relation.isbasedon	10.1111/rmir.12256
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1502 Banking, Finance and Investment
dc.subject.classification	Finance
dc.subject.classification	3502 Banking, finance and investment
dc.title	Risk‐based thinking for extreme events: What do terrorism and climate change have in common?
dc.type	Journal Article
utslib.citation.volume	26
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology/School of Civil and Environmental Engineering
utslib.copyright.status	open_access	*
dc.date.updated	2024-03-05T07:13:54Z
pubs.issue	4
pubs.publication-status	Published
pubs.volume	26
utslib.citation.issue	4

Abstract:

AbstractTerrorism and climate change debates are often characterized by worst‐case thinking, cost neglect, probability neglect, and avoidance of the notion of acceptable risk. This is not unexpected when dealing with extreme events. However, it can result in a frightened public, costly policy outcomes, and wasteful expenditures. The paper will describe how risk‐based approaches are well suited to infrastructure decision‐making for extreme events. Risk management concepts will be illustrated with current research of risk‐based assessment of climate adaptation engineering strategies including designing new houses in Australia subject to cyclones and extreme wind events. It will be shown that small improvements to house designs at a one‐off cost of several thousand dollars per house can reduce damage risks by 70%–80% and achieve billions of dollars of net benefit for community resilience—this helps offset some the predicted adverse effects of climate change for a modest cost. The effect of risk perceptions, insurance, and economic incentives is explored for another climate adaption measure. The paper will also highlight that there is much to be optimistic about the future, and in the ability of risk‐based thinking to meet many challenges.

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