Session 16Slide 16-1 Identify and Assess Risk Mitigation Measures Session 16 Slide Deck.

Session 16 Slide 16-1

Identify and Assess Risk Mitigation Measures

Session 16 Slide Deck

Session 16 Slide 16-2

Objectives16.1 Discuss Potential Risk Mitigation Options.

16.2 Discuss the Concept of Risk Transfer in the Form of Insurance.

16.3 Discuss the Procedures and Techniques for Identifying Potential Risk Mitigation Options.

16.4 Explain Mitigation Evaluation and Discuss Why It Is Needed.

16.5 Discuss the STAPLEE Method of Assessing Mitigation Options.

16.6 Discuss the Factors Involved in Assessing Risk Mitigation Options.

16.7 Discuss One Example of a Method for Selecting and Prioritizing Risk Mitigation Options.

Six Categories of Mitigation Actions

Prevention

•Planning and zoning

•Building codes

•Capital improvement programs

•Open space preservation

•Storm water management regulations

Session 16 3Slide 16-


Property Protection

•Acquisition

•Elevation

•Relocation

•Structural retrofits

•Storm shutters

•Shatter-resistant glassSession 16 4Slide 16-


Public education and Awareness

•Outreach projects

•Real estate disclosure

•Hazard information centers

•School-age and adult education programs



Natural Resource Protection

•Sediment and erosion control

•Stream corridor restoration

•Watershed management

•Forest and vegetation management

•Wetland restoration and preservation



Emergency Services

•Warning systems

•Emergency response services

•Protection of critical facilities



Structural Projects

•Dams

•Levees

•Floodwalls

•Seawalls

•Retaining walls

•Safe roomsSession 16 8Slide 16-

Identifying Appropriate Mitigation Options

• Which actions can help us meet our mitigation objectives?

• What capabilities do we have to implement these actions?

• What impacts (if any) will these actions have on our community?


Insurance

Insurance is defined as, “A promise of compensation for specific potential future losses in exchange for a periodic payment” (InvestorWords.com, 2003)


Insurance Components• Premiums• Claims• Deductibles• Forms of Insurance:

– Auto insurance

– Health insurance

– Disability insurance

– Life insurance

– Flood insurance

– Earthquake insurance

– Terrorism insurance

– Business insurance Session 16 11Slide 16-

How Insurance Works

• Account for all policy holders

• Cost of compensating policy holders

• Administrative costs

• Specific definition of risk to individuals

• Profits


Insurance Coverage

• Most property owners and renters in the United States have some form of insurance that protects either the structure itself, the contents of the structure, or both.

• However, this coverage is often limited, with specific preclusions against certain natural and technological disasters.


Catastrophic Policies

Policies for specific catastrophic hazards can be purchased separately from basic insurance homeowners’ or renters’ policies, or as riders to these policies.


Adverse Selection

Only those people who are likely to suffer the specific loss defined in the policy are likely to purchase that type of policy, creating the need for much higher premiums than if the specific hazard policy were spread across a more general population.


Adverse Selection• Methods adopted to address the problems

associated with adverse selection.

• The inclusion of these disasters in basic/comprehensive homeowner and renters’ policies, regardless of exposure or vulnerability.

• The introduction of government backing on insurance coverage of catastrophic events.

• Heavier reliance on international reinsurance companies.


Insurance Advantages• Victims are guaranteed a secure and

predictable amount of compensation for their losses.

• Losses are distributed in an equitable fashion, protecting many for only a fraction of the cost each would have individually incur if exposed to hazards.

• Insurance can actually reduce hazard impact by encouraging policy holders to adopt certain required mitigation measures.


Limitations on Hazard Insurance

• Insurance can be unavailable in high risk areas. • Participation in insurance plans is voluntary. • Participation has been known to encourage

irresponsible behavior. • Many companies are pulling out of specific disaster

insurance plans. • Catastrophic losses can cause inequitable premium

increases.• Some see insurance as redistributing losses rather than

actually eliminating exposure to the hazard.


Identify alternative mitigation actions

• Review existing literature and resources– Publications and websites

– FEMA Worksheets (See Handouts 16-1 and 16-2)

– Individuals:• Geologists

• Seismologists

• Hydrologists

• Floodplain managers

• Emergency Managers

• Fire Marshals

• Public works engineers

• Transportation engineers

• Civil engineersSession 16 19Slide 16-


• Solicit public opinion and input– Surveys

• Collect valuable information

• Establish rapport and foster involvement among citizens

– A survey or questionnaire can be:• Included in a utility bill

• Conducted door-to-door

• By phone

• Posted on a community website



• Solicit public opinion and input– Survey should ask for information such as:

• The residents’ understanding of what is currently being done to address hazards.

• What residents think is lacking in current efforts and what could be improved upon.

• Suggestions and preferences of proposed mitigation actions.

• Which of your mitigation goals and objectives do residents feel are most important to pursue.

– Survey cost and use of volunteers


Identify and analyze state and local mitigation capabilities

Review and analysis state and local programs:– Types of mitigation actions that may be

prohibited by law.– Limitations that may exist on undertaking

actions.– The range of local and/or state administrative,

programmatic, regulatory, financial and technical resources.


Identify and analyze state and local mitigation capabilities

• Review the state capability assessment:– Resources– What can’t be done– Negative implications


Complete a local capability assessment

• Feasible in terms of your government's legal, administrative, fiscal, and technical capacities

• Responsible local government agencies, departments, and offices

• Indirect effect on your mitigation program

• Interview department or division heads in your local government

• Evaluate existing actions and capacitiesSession 16 24Slide 16-

Assess Mitigation Options

• Match the community’s needs

• Satisfy the specific mitigation objectives

• Change some component of either the physical or social fabric of a community


Community Context• Affect different populations differently• Cost different amounts• Affect the environment to differing degrees• Factors:

– Social– Technical– Administrative– Political– Legal– Economic– Environmental


DMA 2000

• Identification

• Evaluation

• Prioritization

• Special emphasis on the extent to which benefits are maximized


Assessment of risk mitigation options

• Technical experts have selected because they will solve or alleviate the problem.

• How do community leaders choose between them?

• Isolate the problem.

• Imbedded in what the community is already doing.

• Standard set of decision criteria.Session 16 28Slide 16-

STAPLEE method

• Social

• Technical

• Administrative

• Political

• Legal

• Economic

• EnvironmentalSession 16 29Slide 16-

STAPLEE Criteria• Social

– Socially accepted – Public is instrumental in guiding decisions– Effect population– Information sources:

• Local elected officials

• Community development staff

– Planning board– General public


STAPLEE Criteria• Technical

– Technically feasible– Reduces losses– Secondary effects– Degree of help– Information sources:

• Town engineer

• Public works staff

• Building department staff

• FEMA GuideSession 16 31Slide 16-

STAPLEE Criteria• Administrative

– Community’s capabilities for carrying out the projects

• Staffing

• Funding

• Maintenance

– Community resources– Outside resources– Community authority to spend


STAPLEE Criteria• Political

– Mitigation actions are political– Local and state leadership– Insight into the level of political support– Current elected officials– Information sources:

• Board of Supervisors

• Mayor

• City Council

– City Administrator– City Manager


STAPLEE Criteria

• Legal– Legal authority in order to be lawfully

conducted– Enabling legislation– Responsible unit of government– Information source:

• Community Legal Counsel


STAPLEE Criteria

• Economic– Cost-effective– Affordable– General obligation bonds– Alternative (outside) source or sources– Economic aspects– Information sources:

• Community managers

• Economic development staff

• Assessor’s officeSession 16 35Slide 16-

STAPLEE Criteria

• Environmental– Mitigation measures affect the natural environment

– Benefits to the environment

– Environmental factors

– Information sources:• Local health department

• Conservation commissions

• Environmental or water resources agency

• Building officials

• Environmental groups

• Fish and game commissions


Impact of risk mitigation options

• Housing

• Business sector

• Infrastructure

• Community capital building and maintenance plans

• Economy

• Environment


Assessing identified risk mitigation actions

• Impact in reducing the identified risks and vulnerabilities in the community

• Probability that each action will be implemented

• Funding and leveraging of resources


Potential Risk Mitigation Options

• Prevention

• Property Protection

• Public Education and Awareness

• Natural Resource Protection

• Emergency

• Structural Projects


Assessing Risk Reduction Measures

• Reduced number of deaths and injuries

• Reduced property damage

• Reduced economic loss


Assessing Risk Reduction Measures• Reduced number of deaths and injuries from

future events– Prevention - restrict people from living in high-risk areas

– Property Protection – acquisition and relocation of structures

– Public education and awareness –alerting people to stay away for high risk areas

– Natural Resource Protection – Natural habitats provide protection and can reduce casualties

– Emergency services – Search and rescue, swift water rescue and evacuation orders

– Structural projects - flood protection and tornado safe rooms


Assessing Risk Reduction Measures

• Reduced property damage– Prevention – Restricting development in high-risk areas

– Property protection - Removing structures located in high-risk areas

– Public Education and Awareness – Informing individuals and businesses

– Natural Resource Protection –reduced property losses from hazard events

– Emergency Services –protect and mitigate impacts on critical community infrastructure

– Structural Projects – Dams, levees, dikes and seawalls designed to protect life and property


Assessing Risk Reduction Measures• Reduced economic loss

– Economic loss difficult to measure– New methods needed to address economic loss:

• Diversifying a community’s economy

– Assist small business to adapt

• Institute entrepreneurial education curriculum


Probability that each action will be implemented

• Political support

• Public support

• Support from the business sector

• Support from non-profit and interest groups

• Cost

• Long-term vs. short-term benefits


Funding and leveraging of resources

• Local funding source

• State funding sources

• Federal funding sources

• Private funding sources

• Leveraging resources

Session 16 45

Consensus Building

• Establishment of a planning team

• Identification of community risks.

• Risk mitigation options

• Involvement of the public

• Ongoing monitoring and review

Session 16 46

Four factors for prioritizing risk mitigation options:

• Ease of implementation

• Multi-objective actions

• Time

• Post-disaster mitigation

Session 16 47

Two common methods to rank actions

• Multi-voting

• Numerical ranking

Session 16 48

Session 16Slide 16-1 Identify and Assess Risk Mitigation Measures Session 16 Slide Deck.

Documents

slide deck slide

insurance insurance

form of insurance

insurance coverage

preservation session

mitigation objectives

mitigation evaluation

appropriate mitigation