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Earthquake risk assessment and optimal risk management strategies for Hi-Tech Fabs in Taiwan

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Abstract

In this paper, we build an event-based seismic hazard assessment and financial analysis model for Hi-Tech Fabs in Taiwan. As we know, the low occurrence rate, tremendous loss and high uncertainty are characteristics of earthquake disasters. To handle the above issues, the model integrates knowledge from many fields including earth science, seismology, geology, risk management, structural engineering, the insurance profession, financial engineering and facility management. The portfolio of data from the site survey indicates that the model can be used to calculate the event losses (including buildings, contents and business interruption losses); furthermore the average annual loss and loss exceeding probabilities also can be calculated. The total earthquake risk cost, which includes earthquake insurance premiums, average annual retained loss and equivalent annual retrofit cost, is defined as an indicator for selection of optimal risk management strategies.

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Acknowledgments

The authors would like to thank the National Science Council of the Republic of China, Taiwan, for their financial support of this research under Contract Nos. 100-2221-E-022-013-MY2 and 100-2628-E-022-002-MY2.

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Authors and Affiliations

  1. Research Center for Hazard Mitigation and Prevention, National Central University, Jhung-li, Taoyuan, Taiwan, ROC

    Wen-Ko Hsu

  2. Department of Civil Engineering, National Central University, Jhung-li, Taoyuan, Taiwan, ROC

    Wei-Ling Chiang

  3. Institute of Maritime Information and Technology, National Kaohsiung Marine University, Kaohsiung, 80543, Taiwan, ROC

    Cheng-Wu Chen

Authors
  1. Wen-Ko Hsu
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  2. Wei-Ling Chiang
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  3. Cheng-Wu Chen
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Correspondence to Cheng-Wu Chen.

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Hsu, WK., Chiang, WL. & Chen, CW. Earthquake risk assessment and optimal risk management strategies for Hi-Tech Fabs in Taiwan. Nat Hazards 65, 2063–2076 (2013). https://doi.org/10.1007/s11069-012-0462-4

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  • DOI: https://doi.org/10.1007/s11069-012-0462-4

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