Risk and Reaction: Dealing with Interdependencies (To Predict and Prevent: GLOBAL CATASTROPHE‪)‬

With the increasing concentration of people and businesses in high-risk areas and the increasing interdependencies within the world, catastrophes are more likely than ever. Consider the disasters of Hurricane Katrina and the September 11 attacks. Not only was Hurricane Katrina the largest natural disaster in US history, but it also demonstrated how economic and social activities affected by the event translated into global risks with worldwide ripple effects. Katrina had major impacts on several international markets, such as oil, gas, and insurance. The terrorist attacks of September 11 had the immediate impacts of property damage and fatalities, killing more than 3,000 people from more than 90 countries, injuring about 2,250, and inflicting direct damage estimated at nearly US$80 billion. They also caused significant business interruption losses throughout the world and reshaped international relations. [ILLUSTRATION OMITTED]