Decision tools for earthquake risk management, including net present value and expected utility

Title (Dublin Core)

en-US Decision tools for earthquake risk management, including net present value and expected utility

Description (Dublin Core)

en-US The results of earthquake risk assessments should be presented in ways that will help facilitate risk management decisions. So the measures of risk that are chosen need to be those that will assist decision-makers. Annualised Loss may not be the best basis on which risk management decisions can be made. The Conditional Expected Value of the loss, defined for a suitable set of probability ranges, is a promising measure of the risk because it is similar to a scenario loss and can be readily comprehended by decision-makers. Utility Theory provides a further measure by taking account of individuals’ perceptions of the severity of losses. It can be combined with the concept of Net Present Value to give an overall measure of the risk in terms of the value judgements of the individual decision-maker. The reduction in risk that would result from proposed mitigation works can be readily assessed, so that the decision-maker who is faced with the costs of mitigation is in a position to assess the benefits.

Creator (Dublin Core)

Smith, W.D.

Vignaux, G.A.

Publisher (Dublin Core)

en-US New Zealand Society for Earthquake Engineering

Date (Dublin Core)

2006-09-30

Type (Dublin Core)

info:eu-repo/semantics/article

info:eu-repo/semantics/publishedVersion

en-US Article

Format (Dublin Core)

application/pdf

Identifier (Dublin Core)

https://bulletin.nzsee.org.nz/index.php/bnzsee/article/view/359

10.5459/bnzsee.39.3.170-175

Source (Dublin Core)

en-US Bulletin of the New Zealand Society for Earthquake Engineering; Vol 39 No 3 (2006); 170-175

2324-1543

1174-9857

Language (Dublin Core)

eng

Relation (Dublin Core)

https://bulletin.nzsee.org.nz/index.php/bnzsee/article/view/359/345

Rights (Dublin Core)

en-US https://creativecommons.org/licenses/by/4.0

Item