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SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FOR RESILIENCE www.grforum.org Walter J. Ammann Global Risk Forum GRF Davos Global Risk Forum GRF Davos

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Page 1: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

SFDRR PRIORITY 3: INVESTING IN

DISASTER RISK REDUCTION FOR

RESILIENCE

www.grforum.org

Walter J. Ammann

Global Risk Forum GRF Davos

Global Risk Forum GRF Davos

Page 2: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

Technological

• Chemistry (Bhopal, AZT)

• Nuclear (Chernobyl, Fukushima)

• Oil spill (Exxon

Valdez/Alaska) • Fire • Building

Collapse

Slow

• Climate Change • Desertification • Drought • Erosion

•Volcanic Eruptions

•Tsunamis

•Floods

•Landslides

•Storms, Cyclones

•Earthquakes

•Meteorites

Sudden

Natural Hazards

Complex Emergencies

Anthropogenic

Hazards

Disasters

Environmental

• Climate Change • Deforestation • Uncontrolled town

planning, megacities

• Drying Lakes • Wild fires

Conflicts

• Terrorist acts • Riots • Wars

RISKS AND DISASTERS PORTFOLIO

Health and Social

Risks

Page 3: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

What has to be done?

Measures to be taken

What can

happen?

Risk Analysis

What is

acceptable to

happen?

Risk Assessment

Hazard analysis (hazard

intensity and exposure

analysis, vulnerability,

Scenarios important

What is an accepted

safety level?

(Protection goals,

acceptable risk levels)

How safe is safe enough?

INTEGRATIVE RISK MANAGEMENT IRM

KEY QUESTIONS

Page 4: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

INTEGRATIVE RISK MANAGEMENT

RISK CYCLE

Page 5: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

Lack of access to resources (material vulnerability)

Disintegration of social patterns (social vulnerability)

Degradation of the environment (ecological vulnerability)

Lack of strong institutional structures (organizational

vulnerability)

Lack of access to info and knowledge (educational

vulnerability)

Lack of public awareness (attitudinal and motivational

vulnerability)

Certain beliefs and customs (cultural vulnerability)

Limited access to political power (political vulnerability)

Weak buildings and critical facilities and lifelines,

unplanned settlements (physical vulnerability)

Fundamental Causes of Vulnerability

Page 6: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

Lack of access to resources (material vulnerability)

Disintegration of social patterns (social vulnerability)

Degradation of the environment (ecological vulnerability)

Lack of strong institutional structures (organizational vulnerability)

Lack of access to info and knowledge (educational vulnerability)

Lack of public awareness (attitudinal and motivational vulnerability)

Certain beliefs and customs (cultural vulnerability)

Limited access to political power (political vulnerability)

Weak buildings and critical facilities and lifelines, unplanned

settlements (physical vulnerability)

Fundamentals in Resilience

Each type of vulnerability has ist equivalent in

resilience

Page 7: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

How to define resilience?

Time

Fu

nctio

na

lity

100%

t event

Recovery Time

t recovery

Lo

ss i

n

Fu

ncti

on

ali

ty

(Vu

lnera

bil

ity)

Ro

bu

stn

ess

A

Resilience is high if A is small

Event

Indirect secondary

damage costs

Direct damage

costs

Page 8: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

• Limited resources (financial, human, social, ecologic)

• Investment in vulnerability reduction and in resilience

increase

• How to find an optimal way for investing in safety and

security resp. in DRR?

• Decoupling the costs for vulnerability decrease (limits

direct damage costs) and for resilience increase (limits

indirect, secondary damage costs)

INTEGRATIVE RISK MANAGEMENT

Page 9: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

collective

risk (EUR) risk baseline

optimal function of

risk reduction measures Costs for a

measure

maximum

risk-

reduction for a

given

investment

costs for risk reduction

measures (EUR)

VULNERABILITY DECREASE: MARGINAL COST

CONCEPT

Monetarization of risks

to make risks

comparable

Concept:

Marginal costs (willingness

to pay per life saved)

Page 10: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

MARGINAL COST CONCEPT – WILLINGNESS TO PAY

Collective

Risk (CHF)

Initial Risk Level

MEASURES

CHF

Rule of Thumb:

Optimum for measures:

1/3 –(1/2) of risk level

(potential damage)

Cost-benefit-

ratio

Page 11: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

Costs

Recovery time

RESILIENCE OPTIMIZATION (INDIRECT DAMAGE

COSTS)

Optimal recovery time

Indirect damage costs

Costs for resilience

measures

Page 12: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

THE ROLE OF RESILIENCE

• Resilence: many perspectives (technical, social, political, financial, ecological, etc.)

• Vulnerability decrease and resilience increase = sustainable risk reduction

• Prevent or cut chains of causalities

• Prevent simultaneous failures

• Decrease collateral vulnerability

• Decrease the effects of interactions

• Increase effectiveness and efficiency in response and recovery

Page 13: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

DRR AND THE IMPORTANCE OF A RISK

DIALOGUE

Stakeholders have to know in advance that:

Prevention/Mitigation have their limits

Prevention/Mitigation require a lot of

public resources (Tax Money, human

resources)

ZERO-Risk situation does not exist

If stakeholders are not aware about these issues,

they keep on demanding for more protection/security

Page 14: SFDRR PRIORITY 3: INVESTING IN DISASTER RISK REDUCTION FORwci.t.u-tokyo.ac.jp/ResilienceForum2017/pdf/presentations... · 2017. 11. 23. · Integrative project risk management concept

Introduction

Result

Models and

theories

Example

Integrative project risk management

concept

Background

Conclusion

Recommendatio

ns

www.grforum.org

CONTACT INFORMATION

Global Risk Forum GRF Davos

Promenade 35

CH-7270 Davos

Phone: +41 (0) 81 414 1600

Fax: +41 (0) 81 414 1610

[email protected] www.grforum.org

“FROM THOUGHTS TO ACTION”

THANK YOU FOR YOUR KIND ATTENTION

[email protected]