Earthquake risk assessment and optimal risk management strategies for Hi-Tech Fabs in Taiwan

Wen-Ko Hsu, Wei-Ling Chiang and Cheng-Wu Chen ()

Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, 2013, vol. 65, issue 3, 2063-2076

Abstract: In this paper, we build an event-based seismic hazard assessment and financial analysis model for Hi-Tech Fabs in Taiwan. As we know, the low occurrence rate, tremendous loss and high uncertainty are characteristics of earthquake disasters. To handle the above issues, the model integrates knowledge from many fields including earth science, seismology, geology, risk management, structural engineering, the insurance profession, financial engineering and facility management. The portfolio of data from the site survey indicates that the model can be used to calculate the event losses (including buildings, contents and business interruption losses); furthermore the average annual loss and loss exceeding probabilities also can be calculated. The total earthquake risk cost, which includes earthquake insurance premiums, average annual retained loss and equivalent annual retrofit cost, is defined as an indicator for selection of optimal risk management strategies. Copyright Springer Science+Business Media Dordrecht 2013

Keywords: Natural hazards; Earthquake risk; Management strategy (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11069-012-0462-4

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