Developing Risk Profiles for Public Assets

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Developing Risk Profiles for  Public Assets

A risk profile of a public asset is an evaluation of the probability of the asset getting damaged depending on its exposure and vulnerability to a hazard. This determines potential risk reduction measures and the estimation of funds needed to protect the public asset, as a way of mitigating potential risks and threats. In addition, if there should be any residual risk after taking the necessary adaptation measures, these risks can then be transferred to third parties such as insurance companies.

It is in public authority’s best interest to be proactive when it comes to risk profiling its public assets. When public assets, especially critical assets, are not protected, the extent of damage to the infrastructure as a result of a disaster could cause devastating economic impacts and disrupt the lives of people in a society. In addition, political and administrative authorities of a city suffer a negative image since scarce resources that could have been used to advance development are diverted to repair and build back these damaged public assets.