Dynamic Risk Analysis in the Chemical and Petroleum Industry

Chapter 19

Estimation of Reputational Damage from Major Accidents

Tutorial and Examples

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

The cost of reputational damage to a company after a major accident can be estimated through a net worth approach or an event study methodology. Both approaches measure the loss in market value of the company after such event. This chapter provides a step-by-step tutorial for the application of the techniques. A sample application is also carried out for the explosion on April 20, 2010, ...