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Its impacts on individual & business risks and effective risk management steps
Student Name: Xinyuan Zhang Student Number: 111118121 Course Code: EC3125
and in turn made the physical assets risk increased. as essential household items such as furniture. 2011). . In this situation. earnings and liability. heating boilers and electrical equipment had been floated away or rendered useless (Sean Crowe TD. especially in home and motor terms. The serious flooding resulted from the torrential rain affected hundreds of householders in Dublin. a series of effective steps could be implemented by individuals and businesses to minimize these risks. Roads were blocked with obstacles. many motorists abandoned their vehicles that were out of work or damaged by floodwater. luckily. 2011). Meanwhile. The effects on individual risks The flooding in Dublin increased various risks facing individuals in terms of physical assets. the medical expenses risk surged as a number of people were injured during the flooding. and yet. many homes were left in chaos after the flooding. 2011). and enhanced the physical assets risk exposures to individuals. injured individuals would have to pay a big deal of medical bills. homes and motors experienced great damages during the prolonged floods. Also. The devastating floods induced and increased individual and business exposures of a range of risks. we have all seen that great losses have been brought into this city with various huge damages.With thousands of houses and business premises hit by the severe flooding which happened in Dublin in October 2011. shopping centres were destroyed by floodwaters whilst most householders suffered from their flooded homes and damaged personal possessions. As a result. According to recent reports. Some people had various degrees of physical injuries like fracture dealt out by floating furniture. which apparently made the medical expenses risk rise. medical expenses. which led to rising expected losses. and fled from the floods (Hegarty and Burca. while others suffered mentally due to losses of irreplaceable family possessions and financial burdens (Sean Crowe TD. flooring. longevity.
due to the floods. It is reported that ‘over 1. Businesses were destroyed during sudden .Simultaneously. liability risk and price risk facing businesses were all affected to some extents. pensions seemingly were not possible to be received by them anymore. the earnings risk was engendered. particularly in terms of damage to assets. Since these two people lost their lives. The damage to assets risk. and a Garda member was swept into the River Liffey and died (The Irish Times. These individuals would not be able to work in a certain period. some car drivers would face the liability risk if they drove Likewise. pedestrians were more likely to be injured into another car and were sued. the longevity risk also occurred when two people were reported died in that severe flooding. or temporary unemployment as some companies came to suspend after being negatively affected by the flooding. A 35-year-old woman drowned in her basement flat on Parnell Road. since some individuals were injured or dead in the floods. which thereby caused longevity risk. 2011).000 properties were flooded in the Dublin city area during last October's ''Monster Rain'' event’ (RTE News. 2011). and this led to an expected loss in the future. Accordingly. by the rushed out furniture or the collapse of a house. Moreover. The effects on business risks Simultaneously. If so. Due to the floods. while the damage to assets risk was dramatically enhanced by that unexpected flooding. because of death. hundreds of businesses in Dublin faced exposures of pure risk. the possibility of car crashes was enhanced due to the bad weather and floodwater. the house owners might be charged for medical expenses or compensation and face the liability risk. So. In this case. many business organisations also suffered a lot during flooding. and diversified risks came along with the disastrous weather conditions. injury. potential earning losses would occur and the earnings risk increased.
It is announced on the Irish Insurance Federation (IIF. the commodity risk . liability and price risk were also induced by the flood. This high amount of insurance bills pushed insurance companies to a fairly risky edge of bankruptcy and aroused inability to cover claims. and property losses to major suppliers or customers also led to rising expected profit losses. and higher pure risk facing businesses was evoked after the arrival of Dublin floods. Higher expected financial losses were caused. With all the situations above. the flooded properties’ market value in certain areas probably would decline in future. loss of sales from not being able to sell.flash floods around the city. Liability risk increased as most insurance companies suffered great losses and tended to fraud if they did not have adequate premium loadings to cover all customer claims. several flights delayed and some cancellations were announced at Dublin airport (Aoife and Charlie. 2011). 2011). The expenses of tracks repair and roadwork hereby surged and contributed to increasing expected costs. Meanwhile. Green Line Luas services were cancelled shortly. the public transportation industry also was negatively affected by the floodwaters: hundreds of roads were flooded and blocked for obstacle clearness. with the flooded premises and losses of stock and expensive equipment. whist north side Dart services and northern commuter services were resumed. Dundrum Town Centre in Dublin. During the severe floods. as people would regard those areas as flood risk areas and revalue the properties there. such as the costs generated from business income/interruption exposures: as many businesses like shopping malls were interrupted. one of Europe's biggest shopping centres. destroying most stores as well as causing thousands of euro worth of damage (Cassisy. Except direct costs. as a result. In addition to pure risk. Moreover. the uncertainty and expected losses facing by enterprises greatly rose up. there was also potential indirect costs. the property losses and assets damage appeared to be a large amount. remained closed for days after floodwaters surged through the doors. 2012) website that the estimated total insured cost of last October's floods has hit €127 million. Furthermore. operating expenses during shutdown like salaries and advertising.
having insight into the possible consequences and risks of flooding is very important.increased. Individuals should take every possible risk exposures into consideration: drop in earnings. businesses should think about exposures of property losses. and figure out total expected losses with reference to all the identified risks. as the price of primary products tended to rise. the primary product price was expected to rise and higher price risk hereby occurred for businesses like supermarkets. Also. the impacts of it on can be lessened with useful risk management measures which include five major steps. for some individuals and small firms who have little experience in risk estimation. longevity and so on. personal liability. 2012). Steps for individuals and businesses to mitigate risks Although the flooding is not evitable. liability losses. they can turn to consulting agencies for help and receive information from experts. medical expenses. After indentifying all the potential risks. and farmers suffered losses from missing mountain flocks and damaged crops (Mcgreevy. individuals and businesses are supposed to evaluate the potential frequency and severity of losses. Due to farmers’ losses and inconvenient public transportation. it comes to the critical step: developing and selecting methods for managing risk. various reduced level of risky activities and increased . They can estimate the possibility of being flooded based on the historical data. To reduce the frequency and severity of risks which might be evoked by flooding. Loss control. and internal risk reduction are three effective methods that can be taken. loss financing. losses to human resources and any other potential risks that might be induced by flooding. Kennedy and Connell. Then. To support decision making regarding flood defence strategies and protection standards. Acres of farmlands were flooded by the torrential rain. Likewise. The first step for individuals and businesses to reduce risks evoked by the flooding is to identify all significant risks that can cause losses.
such like purchasing relevant insurances that would compensate for losses once floods happen. and make sure that all staffs know what to do in case of a flood. householders and businesses should move on to implementing the risk management methods they choose (step four). business and legal documents in watertight containers and place above flood height. they need to take a range of precautions. Also.precautions can be implemented in advance. taking furniture to upper floors or raise on a sturdy table. avoiding settling down in flood risk areas). and external links. For businesses. while householders can finance from usual deposits. Afterwards. central funds or credit lines can sometimes be an efficient answer to a risk financing problem for businesses. equipment and possessions should be considered to give special protection from flood waters or move to safety places. and securing vehicles to undermine detrimental flood impacts. However. Householders should have a sense of security (for example. loss financing is another risk management method which can mitigate the cost of retained risks. they should have a flood plan in place. a marked map for energy cut-off points. and monitoring suitability and performance of chosen risk management methods and strategies on an ongoing basis . individuals and businesses can make investments in information regarding flooding risk management profile suggestions (internal risk reduction method). and figure out the optimal risk management structure. Using cash. Seemingly. post-loss financing strategy also can be used to cope with a loss after it occurs. Enterprises also can transfer risks to others by signing certain contracts that protect business from any lawsuits that may arise. key stock. which include emergency contacts. which indicates that individuals should keep some idle funds for unexpected incidents like flooding. such like sealing important personal. Individuals and businesses can take pre-loss financing strategy. Except loss control. Besides. and after receiving a flood alert. individuals and businesses should have an overall tradeoff between the expected reduced cost of losses and costs of risk management. some organizations also can register their businesses with an automated flood alert system so as to acquire flooding movement along with emergency action instructions. Additionally.
risk evaluation. The earnings risk was engendered since the injured individuals were not able to work for a certain period. suitable risk management strategies can be applied by individuals and businesses to undermine those numerous risks. has enhanced categorized individual and business risks and led to millions of euro losses. businesses experienced property losses and declined sales revenue. In this situation. It is important for individuals and businesses to capture risk management steps in order to defend flooding disasters smoothly. householders were exposed to physical assets. earnings and liability risks. Conclusions Last October’s flooding in Dublin. risk management strategies can be adjusted regarding the actual situation. the liability and price risk increased. and experiences acknowledged can be accumulated for the next flooding dealing.(step five). the medical expenses risk and longevity risk surged as a number of people were injured and two died during the flooding. the possibility of car crashes was enhanced due to the bad weather and floodwater. as some businesses were in financial crisis and input price had a tendency to rise. Risk identification. which in turn rose up liability risk. and enhanced the physical assets risk exposures to individuals. liability risk and price risk. Word Count: 1942 . During the last two steps. the risk management method choosing. The serious flooding resulted from the torrential rain affected hundreds of householders in Dublin. especially in home and motor terms. due to the flooding. management method implementation and ongoing monitoring are five effective steps providing a framework for balancing the multiple complementary and competing factors that affect risk and mitigating the cost of losses to the minimal extent. medical expenses. longevity. Meanwhile. while businesses were exposed to damage to assets risk. Moreover. Also. which flooded thousands of houses and damaged numerous properties and possessions. Also. However.
(Accessed: 11 March 2012).html (Accessed: 12 March 2012). The Irish Times. 25 October [Online].html (Accessed: 5 March 2012). and Connell. A.com/newspaper/breaking/2011/1024/breaking43. Available at: http://www. L.irishtimes.irishtimes.irishtimes. The Irish Times. Sean Crowe TD (2011) ‘Widespread flooding cause misery amongst householders across Dublin’.irishtimes.ie/latest-news/1-news/144-widespread-flooding-cause-misery-a mongst-householders-across-dublin.rte. RTE News (2011) ‘1.References: Aoife.com/newspaper/breaking/2011/1025/breaking43.html?via =rel (Accessed: 3 March 2012).. Cassisy. 25 October [Online]. 26 October [Online].000 Dublin properties flooded in October’. Hegarty. 25 October [Online].iif.html (Accessed: 10 March 2012). Daily Mirror. Available at: http://seancrowe. (2011) ‘Dundrum flooding response criticised’. 15 December Online]. E. Available at: http://www.co.ie/ (Accessed: 10 March 2012). S. Available at: http://www.mirror. R. and Charlie. Available at: http://www. (2011) ‘Traffic disruptions after floods’. Kennedy.uk/news/top-stories/2011/10/25/ireland-floods-garda-swept -away-by-swollen-river-115875-23513141/ (Accessed: 28 February 2012). Available at: http://www.com/newspaper/ireland/2011/1026/1224306505841. (2011) ‘Ireland floods: Garda swept away by swollen river’. (2011) ‘Flood damage in east may cost tens of millions of euro’. D.com/newspaper/breaking/2011/1025/breaking4. Irish Insurance Federation (2011) Home page. 24 October [Online]. Mcgreevy. Available at: http://www.B. . The Irish Times (2011) ‘Severe flooding disrupts travel’.html (Accessed: 3 March 2012).ie/news/2011/1215/flooding. The Irish Times. C. and Burca. T. 26 October [Online]. Available at: http://www.
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