DISASTER RISK MANAGEMENT AND ECONOMIC EVALUATION

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Once large scaled disaster hits a society, a large number of households and firms are simultaneously damaged. The traditional cost benefit analysis of disaster mitigation mainly focuses upon expected loss reduction, neglecting the catastrophe aspects of disaster risks. In this paper, it is claimed that the disaster risk management methods can be classified into risk control and financing methods. In order to cope with the catastrophic disaster risks, it is requested to build the integrated disaster management systems and extend the theoretical framework of cost-benefit analysis. In this paper, the authors present cost-benefit analysis methods of catastrophe risk mitigation and summarize research issues to be solved in future.