Stefan Hochrainer develops a catastrophe risk management model. It
illustrates which trade-offs and choices a country must make in
managing economic risks due to natural disasters. Budgetary
resources are allocated to pre-disaster risk management strategies
to reduce the probability of financing gaps. The framework and
model approach allows cross country comparisons as well as the
assessment of financial vulnerability, macroeconomic risk, and risk
management strategies. Three case studies demonstrate its
flexibility and coherent approach.
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