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Financial Management of Earthquake Risk

Financial Management of Earthquake Risk. Prepared by the Committee for the Project on Financial Decisions and Catastrophe Risk. This white paper provides an overview of the following: 1) how financial risk is managed in the residential, commercial, small business, lifelines and government sectors; 2) how risk can be reduced, transferred or avoided through the use of insurance, mortgages and capital market instruments; and 3) how earthquake engineering expertise fits into this process. The discussion should be useful for the following audiences: 1) engineering students and faculty in understanding different career options that use engineering knowledge; 2) practicing engineers in understanding how the information they provide to various clients is part of the larger process of financial risk management; and 3) financial managers in gaining a better understanding of how the financial and earthquake engineering communities are interrelated. February 2000, 128 pp.

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