Financial Management of Large-Scale Catastrophes

image of Financial Management of Large-Scale Catastrophes

Dramatic events, such as the earthquake that struck China’s Sichuan Province in 2008 and the devastation caused by Hurricane Katrina in the United States in 2005, have brought the financial management of catastrophic risks once again to the forefront of the public policy agenda globally. To address these issues and develop sound policies, the OECD has established an International Network on the Financial Management of Large-Scale Catastrophes. This publication supports the ongoing activities of the Network.

This book contains three reports focusing on different institutional approaches to the financial management of large-scale catastrophes in selected OECD and non-OECD countries, the role of risk mitigation and insurance in reducing the impact of natural disasters, and the importance of strategic leadership in the management of non-conventional crises.


Annex C

An Example of an Off-The-Scale Crisis - Katrina, August 29-September 2005

Hurricane Katrina struck the Gulf of Mexico coastline on August 29, 2005. It is estimated to have caused 1,300 deaths: it was the costliest hurricane in terms of human lives since 1928 (when the Okeechobee hurricane killed 2,500 people), and the third worst in American history (Galveston, 1900, 8 000 deaths)2. An essential point is that it presented two facets:


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