Catastrophic Risk : Analysis and Management

The book is divided into two parts: Part I: Identification and Analysis of Catastrophic Risk  Part I of the text introduces the topic of catastrophe risk management by examining general facets of financial and operating risk and defining the unique qualities of high severity/low frequency risks. Several chapters are then devoted to the risk identification process, with a particular focus on natural and man made perils and regional vulnerabilities. Methods of quantifying catastrophe risks, including the development of a multi stage modelling process, are then explored. Part II: Management of Catastrophic Risk Part II of the text builds on the identification and modelling phases by introducing a general framework for the management of catastrophe risks. Specific chapters are devoted to the implementation of pre and post loss financing solutions, including insurance and reinsurance, catastrophe bonds and contingent capital, catastrophe derivatives, and public management and financing. The book concludes with a discussion of critical issues and future challenges related to effective management of catastrophe risks.