Course Title : Disaster Risk Management

Code 10X333
Course Year Master and Doctor Course
Term 1st term
Class day & Period Wed 4th
Location C1-171
Credits 2
Lecture Form(s) Lecture
Language English
Instructor TATANO Hirokazu, YOKOMATSU Muneta

Course Description

Natural disasters have low frequencies but high impacts. It is very important to make an integrated risk management plan that consists of various countermeasures such as prevention, mitigation, transfer, and preparedness. This class will present economic approaches to natural disaster risk management and designing appropriate countermeasures.


Evaluate mainly by the presentations in the class as well as end-of-term report, taking active and constructive participation in the class into account.

Course Goals

Students are expected to understand fundamental ways of economic analyses of disaster prevention such as economic valuation of disaster losses, decision making principle under risks, derivation of benefits of risk management.

Course Topics

Theme Class number of times Description
Introduction to disaster risk management 1 Introduction and Explanation of Course Outline, The Global Trends of Natural Disasters
1. Decision making theory under uncertainty 1 Bayes' theorem, Expected utility function
Methods of disaster risk management 1 Risk control and risk finance
Economic valuation of catastrophic risk mitigation 1 Cost-Benefit analysis, conventional valuation method, catastrophic risks and economic valuation of disaster mitigation
Risk perception bias, land-use and risk communication 2 Risk perception bias, land-use model, risk communication
Disaster risk finance 2 Recent issues of risk finance market, reinsurance, CAT bond, roles of government, derivatives
Risk curve and risk assessment 1 Fragility curve and risk assessment
General equilibrium analysis under disaster risk 1 General equilibrium model under disaster risk
Macrodynamics under disaster risk 1 GDP, economic growth
Disaster accounting 1 Accounting systems
Exercise and presentation 2 Students' exercise and presentation
Confirmation of the learning achievement degree 1 Confirmation of the learning achievement degree


Tatano,H., Takagi,A.(ed.):Economic Analysis of disaster prevention, Keiso pub.,2005 (in Japanese).


Froot ,K.A.(ed) “The Financing of Catastrophic Risk”, the University of Chicago Press Kunreuther H. and Rose, A., “The Economics of Natural Hazards”, Vol.1 & 2, The International Library of Critical Writings in Economics 178, Edward Elgar publishers, 2004
Okuyama, Y., and Chang, S.T.,(eds.) “Modeling Spatial and Economic Impacts of Disasters” (Advances in Spatial Science), Springer, 2004.



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