Dynamic Risk Analysis in the Chemical and Petroleum Industry

Chapter 18

Reputational Damage After Major Accidents

K. Kyaw¹,  and N. Paltrinieri^{2,3     1}Trondheim Business School, Norwegian University of Science and Technology (NTNU), Trondheim, Norway     ²Norwegian University of Science and Technology (NTNU), Trondheim, Norway     ³SINTEF Technology and Society, Trondheim, Norway

Abstract

Consequences of a major accident can take two main forms. The first and most obvious is direct losses arising from the accident, represented by physical damage. In addition to this, a less obvious effect of an accident is damage to the reputation of the company. Estimating this is especially challenging because it can be encountered in various forms. For example, loss of future sales or a change in the relationships with ...