Risk Management Research

The Wharton Risk Center researches and evaluates strategies for risk communication, risk reduction, and risk transfer.

Climate Change

climate disastersThe direct and indirect impacts of climate change — activities to limit future emissions of greenhouse gases, and activities undertaken to adapt to climate change — are all likely to have major implications for the insurance and financial industries. The Wharton Risk Center research activities in conjunction with Carnegie Mellon’s Climate Decision Making Center focus on four key areas: Direct Climate…
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Critical Infrastructure

critical infrastructure Approaches toward “infrastructure” policy in the United States have evolved over the past century from an initial emphasis on infrastructure adequacy, to a move toward deregulation with the aim of increasing efficiency, to a recent focus on infrastructure “protection.” Over the past decade, policy makers, executives, military leaders, and academics have sought effective strategies to guard…
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Disaster Aid

Each year, the United States spends billions of dollars on federal disaster assistance – funds used to help state and local governments, households, and business and non-profit organizations recover from natural disasters. Since 2005, the federal government has spent more than $300 billion on disaster relief — most of which is off-budget and only provided after a disaster through emergency supplemental appropriations.
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Managing and Financing Extreme Events

extreme eventsHurricane Katrina highlights the fact that the United States does not have a systematic, coherent and well thought out approach for dealing with large-scale natural disasters. It has raised a number of questions regarding the role that insurance can or should play in providing protection against losses to residential and commercial structures…
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Flood Insurance

The National Flood Insurance Program (NFIP) is the primary source of flood insurance for households and businesses in the United States. Congress created the NFIP in 1968 in response to devastating floods, increasing federal disaster costs, and a lack of flood coverage in the private market. Since then, …
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Flood Resilience Research — Collaboration with Zurich Insurance Group and IIASA

Flood resilience researchCatastrophic floods have caused billions of dollars in losses and displaced millions of individuals and businesses in recent years. The flood resilience project will provide extraordinary opportunities to advance global understanding of flood impact, risk reduction, financial protection, and community resilience. This is a joint collaboration for by the Wharton Risk Center, Zurich Insurance …
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Terrorism Insurance

terrorism insurance marketsTerrorism risk poses fundamental challenges to our national security which must be seen in a dynamic perspective as the threat is continuously evolving. One of these challenges is associated with terrorism insurance coverage…
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Third Party Inspections

third party inspectionsUnderlying public cries for better or increased inspections that often follow an industry disaster or near-disaster is a fundamental problem of virtually every regulatory agency and regulated industry: the number of regulated firms far exceeds the resources of agencies to inspect those firms. Research at the Risk Center is directed towards examining the value of enhancing the role that third-parties play in implementing regulations.
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