Summary of Towards Disaster-Risk Sensitive Investments

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Natural disasters are an unfortunate aspect of life, but should businesses always avoid investing in disaster-prone regions? Companies need reliable risk information to answer this question. Thus, the United Nations Office for Disaster Risk Reduction commissioned the Economist Intelligence Unit to study this issue. The ensuing report analyzes 20 countries to aid firms’ assessments of hazard exposure. getAbstract recommends these unique and insightful country profiles to policy makers and business executives interested in a better understanding of “tail risks.”

About the Author

The Economist Intelligence Unit is an independent research and analysis organization.

 

Summary

The UN set up its Office for Disaster Risk Reduction (UNISDR) in 1999 to help coordinate the global response to natural disasters, which are a “serious disruption of the functioning of a community or a society, involving widespread human, material, economic or environmental losses and impacts, [and] which exceed the ability of the affected community or society to cope using its own resources.” The world continues to experience increasingly frequent cataclysmic events, yet businesses often view these as rare “tail risks” that are difficult to gauge. Thus, firms fail to plan for them. ...


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