Wharton Risk Management and
Decision Processes Center
For three decades, the Risk Management and Decision Processes Center at the Wharton School of the University of Pennsylvania has been at the forefront of basic and applied research to promote effective corporate and public policies for low-probability events with potentially catastrophic consequences.
What We Do
Decision Processes
Understanding and improving individual decision-making in the presence of uncertainty
Risk Management
Researching and evaluating strategies for risk communication, risk reduction, and risk transfer
Public Policy
Engaging decision-makers in designing
effective risk management policies
POLICY INCUBATOR
The Policy Incubator supports novel approaches for increasing resilience through the development of visionary ideas, encouragement of innovative thinkers, and the advancement of workable on-the-ground solutions.
THE OSTRICH PARADOX
Our ability to foresee and protect against natural catastrophes has never been greater, yet we fail to heed the warnings and protect ourselves and our communities. What explains this contradiction?
Mastering Catastrophic Risk: How Companies are Coping with Disruption
Howard Kunreuther and Michael Useem
Provides important lessons for decision makers at all levels to reduce the likelihood and curtail the costs — human, financial, and reputational — of large-scale disruptions.
Featured Publications
In the News
How America Fails at Communicating Flood Risks
CityLab
By Carolyn Kousky: We have good data about flood risks. The challenge is getting it to people when they need it, in a way that’s useful.
Americans need better disaster relief and insurance programs
The Hill
Op-ed by Carolyn Kousky: “More than 90 percent of all federal dollars for flood risk reduction are tied to presidential disaster declarations. Making better use of these dollars requires advanced planning.”
Small Businesses Say Federal-Disaster Aid Needs Strengthening
Wall Street Journal
“After superstorm Sandy hit the northeast in 2012, 8% of firms affected by the storm borrowed money from the agency’s disaster-lending program, according to a 2016 study by the University of Pennsylvania’s Wharton School and the Federal Reserve Bank of New York…”
Risk Center Updates
Flood Risk and the U.S. Housing Market
By Howard Kunreuther, Susan Wachter, Carolyn Kousky and Michael LaCour-Little.
Today, many homeowners are uninsured against flood damage. The lack of widespread take-up of flood insurance will not only impose financial strain on families but could have spillover effects in adjoining communities and may trigger foreclosures that hurt lenders.
This paper describes the U.S. housing market’s exposure to flood risk and suggests directions for future research and action.
The article by Jeffrey Czajkowski, Kevin Simmons and James Done has been selected to receive the RMIR Award for Best Article by the American Risk and Insurance Association (ARIA). This award is selected by a committee, chaired by Dr. Joan Schmit, which reviews all the articles published in the prior calendar year (2017) in ARIA’s Risk Management and Insurance Review.
Living with Water: The Future of Flood Insurance in Pennsylvania
Carolyn Kousky is speaking at a roundtable, “Living with Water: The Future of Flood Insurance in Pennsylvania” in Harrisburg, PA on August 27, 2018. The event is open to the public.
Research Topics
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Contact
Wharton Risk Management
and Decision Processes Center
St. Leonard’s Court | Suite 130
3819 Chestnut Street
Philadelphia, PA 19104
P: 215-898-5688
F: 215-573-2130