Infrastructure
Risk
Management
Extreme events are “the new normal.” The following is a short list of extreme events since year 2000, each imposed billions of dollars of direct economic loss and took years to recover.
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Terrorist attack (September 11, 2001): $55B of physical damage and over $1T of economic loss
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Hurricane Katrina on August 2005: $160B of direct economic loss imposed on only private sector
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Financial Crisis of 2007-2008: led to a loss of more than $2T in global economic growth. In the U.S., the unemployment rate peaked at 10.0% in October 2009 and did not return to its pre-recession level of 4.7% until May 2016.
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Hurricane Sandy (October 2012): business interruption in 309 sectors of economy (out of 414 sectors) and over $115B in economic loss
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Hurricanes Harvey and Irma (Summer 2017): $190B of direct economic loss resulting in major changes on the nature of energy sector not only in the U.S. South, but also across the globe
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COVID-19 Pandemic (2019-2020): Outbreak caused supply disruptions, leading to the fastest U.S. stock market plunge from record highs into a correction; resulting unemployment rate reaching highs, bringing comparisons to 1929
The ever-increasing frequency as well as the magnitude of such random events convey a clear message to executives and investors. All investments must factor in or at least acknowledge the random arrival of extreme events, analyze the vulnerability of their assets to such threats, and enhance their resiliency in time of disaster.
At Altum Group Advisors, we provide our clients with cutting-edge analytical tools to
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Estimating the randomness and scale of extreme events
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Modeling the robustness of infrastructure or business entities in time of disaster
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Allocating resources and implementing strategies to enhance the asset’s functionality pre-, during, and post-disaster
In the past 12 years, our team has led many resilience-enhancing projects for public and institutional NGOs in developing countries as well as Canada and the U.S.