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Are corporates getting serious about earthquake risk yet? March 15, 2010

Posted by Bob Cook in Financial Planning & Analysis, Silicon Valley.
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National Real Estate Investor reports that “Earthquakes Spur Interest in Seismic Risk for Properties”. It cites a grocery chain with stores along the San Andreas Fault in Southern California and how property insurance concerns led to a seismic risk evaluation. The big risk for companies, though — particularly in Silicon Valley — is business disruption. Companies won’t seriously address the concern, though, until there is an accepted way to quantify the risk such that stock investors can take it into account in valuing companies.

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