Learning from Catastrophes: Strategies for Reaction and Response

1. Principles and Challenges for Reducing Risks from Disasters

Howard Kunreuther and Michael Useem

The Wharton School, University of Pennsylvania

Overview

This chapter provides a framework and a set of guiding principles for designing alternative strategies for reducing losses from low-probability, high-consequence events. This framework highlights the importance of expert assessment of the risk, as well as the importance of understanding how the public perceives the risk. These two elements should serve as a basis for developing and evaluating strategies to manage risk. Seven principles provide guidance to leaders in designing measures that will reduce losses in advance of a disaster and in developing efficient and equitable means to aid the ...