Identify and Assess Risk Mitigation Measures Session 16 Slide Deck Session 16

Objectives 16.1 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. Session 16

Six Categories of Mitigation Actions Prevention Planning and zoning Building codes Capital improvement programs Open space preservation Storm water management regulations Session 16 Slide 16-

Six Categories of Mitigation Actions Property Protection Acquisition Elevation Relocation Structural retrofits Storm shutters Shatter-resistant glass Session 16 Slide 16-

Six Categories of Mitigation Actions Public education and Awareness Outreach projects Real estate disclosure Hazard information centers School-age and adult education programs Session 16 Slide 16-

Six Categories of Mitigation Actions Natural Resource Protection Sediment and erosion control Stream corridor restoration Watershed management Forest and vegetation management Wetland restoration and preservation Session 16 Slide 16-

Six Categories of Mitigation Actions Emergency Services Warning systems Emergency response services Protection of critical facilities Session 16 Slide 16-

Six Categories of Mitigation Actions Structural Projects Dams Levees Floodwalls Seawalls Retaining walls Safe rooms Session 16 Slide 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? Session 16 Slide 16-

Insurance Insurance is defined as, “A promise of compensation for specific potential future losses in exchange for a periodic payment” (InvestorWords.com, 2003) Session 16 Slide 16-

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 Slide 16-

How Insurance Works Account for all policy holders Cost of compensating policy holders Administrative costs Specific definition of risk to individuals Profits Session 16 Slide 16-

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. Session 16 Slide 16-

Catastrophic Policies Policies for specific catastrophic hazards can be purchased separately from basic insurance homeowners’ or renters’ policies, or as riders to these policies. Session 16 Slide 16-

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. Session 16 Slide 16-

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. Session 16 Slide 16-

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. Session 16 Slide 16-

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. Session 16 Slide 16-

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 engineers Session 16 Slide 16-

Identify alternative mitigation actions 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 Session 16 Slide 16-

Identify alternative mitigation actions 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 Session 16 Slide 16-

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. Session 16 Slide 16-

Identify and analyze state and local mitigation capabilities Review the state capability assessment: Resources What can’t be done Negative implications Session 16 Slide 16-

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 capacities Session 16 Slide 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 Session 16 Slide 16-

Community Context Affect different populations differently Cost different amounts Affect the environment to differing degrees Factors: Social Technical Administrative Political Legal Economic Environmental Session 16 Slide 16-

DMA 2000 Identification Evaluation Prioritization Special emphasis on the extent to which benefits are maximized Session 16 Slide 16-

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 Slide 16-

STAPLEE method Social Technical Administrative Political Legal Economic Environmental Session 16 Slide 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 Session 16 Slide 16-

STAPLEE Criteria Technical Technically feasible Reduces losses Secondary effects Degree of help Information sources: Town engineer Public works staff Building department staff FEMA Guide Session 16 Slide 16-

STAPLEE Criteria Administrative Community’s capabilities for carrying out the projects Staffing Funding Maintenance Community resources Outside resources Community authority to spend Session 16 Slide 16-

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 Session 16 Slide 16-

STAPLEE Criteria Legal Legal authority in order to be lawfully conducted Enabling legislation Responsible unit of government Information source: Community Legal Counsel Session 16 Slide 16-

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 office Session 16 Slide 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 Session 16 Slide 16-

Impact of risk mitigation options Housing Business sector Infrastructure Community capital building and maintenance plans Economy Environment Session 16 Slide 16-

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 Session 16 Slide 16-

Potential Risk Mitigation Options Prevention Property Protection Public Education and Awareness Natural Resource Protection Emergency Structural Projects Session 16 Slide 16-

Assessing Risk Reduction Measures Reduced number of deaths and injuries Reduced property damage Reduced economic loss Session 16 Slide 16-

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 Session 16 Slide 16-

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 Session 16 Slide 16-

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 Session 16 Slide 16-

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 Session 16 Slide 16-

Funding and leveraging of resources Local funding source State funding sources Federal funding sources Private funding sources Leveraging resources Session 16

Consensus Building Establishment of a planning team Identification of community risks. Risk mitigation options Involvement of the public Ongoing monitoring and review Session 16

Four factors for prioritizing risk mitigation options: Ease of implementation Multi-objective actions Time Post-disaster mitigation Session 16

Two common methods to rank actions Multi-voting Numerical ranking Session 16