Catastrophic Risk
Analysis and Management
Wiley Finance Series
1. Edition March 2005
194 Pages, Hardcover
Wiley & Sons Ltd
Short Description
Catastrophic risk stands as one of the most significant and challenging areas of corporate risk management. The onset of hurricane, earthquake, windstorm, terrorism, systemic financial dislocation, or "clash losses" can create billions of dollars of losses, financially damaging companies and regional/national economies. A single "supercat" event affecting a densely populated and economically productive area may be exceptionally devastating, causing losses in excess of $100 billion.
This book is a timely guide to the worst financial risks threatening companies and industries today. Beginning with a consideration of 'catastrophe' and its economic and risk implications, this book goes on to look at the state of actuarial and financial modelling of catastrophe risks, pricing catastrophe risk from the reinsurance and capital markets, and how to create a suitable risk management framework to manage exposure efficiently and securely.
Catastrophic risk is one of the most significant and challenging areas of corporate risk management. Analyze this risk for your company with Catastrophic Risk and make sure you have sufficient resources to absorb losses and avoid financial distress.
The first comprehensive volume to address this topic from a financial perspective, this book is a guide to the worst financial risks threatening companies and industries today. Author Eric Banks begins with a consideration of 'catastrophe' and its mplications, looks at the state of actuarial and financial modelling of catastrophe risks, and discusses the creation of a risk management framework that will enable the efficient and secure management of exposure. Catastrophic Risk is essential reading if you're a corporate treasurer, CFO, or insurance/financial risk manager responsible for corporate risk management. Order your copy today.
About the author.
PART I: IDENTIFICATION AND ANALYSIS OF CATASTROPHIC RISK.
1 Catastrophe and Risk.
1.1 Introduction.
1.2 The nature of catastrophe.
1.3 The scope of impact.
1.4 Catastrophe and the risk management framework.
1.5 Overview of the book.
2 Risk Identification I: Perils.
2.1 Natural catastrophe.
2.2 Man-made catastrophe.
2.3 Mega-catastrophe and clash loss.
3 Risk Identification II: Regional Vulnerability.
3.1 Spatial impact of natural catastrophes.
3.2 Spatial impact of man-made catastrophes.
3.3 Urban vulnerabilities.
4 Modeling Catastrophic Risk.
4.1 The development and use of models.
4.2 The goals of catastrophe modeling.
4.3 General model construction.
4.4 Challenges.
PART II: MANAGEMENT OF CATASTROPHIC RISK.
5 Catastrophe and the Risk Management Framework.
5.1 Active risk management.
5.2 Risk monitoring.
5.3 Private and public sector efforts.
5.4 Sources of capital.
5.5 Toward active risk management.
6 Catastrophe Insurance and Reinsurance.
6.1 Insurable risk and insurance.
6.2 Catastrophe insurance.
6.3 Reinsurance.
6.4 Catastrophe reinsurance.
6.5 Market cycles.
6.6 Internal risk management.
6.7 Challenges.
7 Catastrophe Bonds and Contingent Capital.
7.1 Overview of securitization.
7.2 Catastrophe bonds.
7.3 Contingent capital.
7.4 Challenges.
8 Catastrophe Derivatives.
8.1 Overview of derivatives.
8.2 Exchange-traded catastrophe derivatives.
8.3 OTC Catastrophe derivatives.
8.4 Challenges.
9 Public Sector Management and Financing.
9.1 Forms of public sector involvement.
9.2 Challenges.
10 Outlook and Conclusions.
10.1 Loss control.
10.2 Quantification.
10.3 Loss financing.
10.4 Government participation.
10.5 General management.
Bibliography.
Index.