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Natural Disasters and Decisions That Flow

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Natural Disasters and Decisions That Flow
ESLSCA
MIBA - Group 43C
Contemporary Management Course

Case Study # 02 Worksheet
NATURAL DISASTERS AND THE DECISIONS THAT FOLLOW

Version 1.0: 21 Jun 2013
Presented by: Hossam Bashir

I. Problem Definition:

* Natural disasters such as hurricane, winter snowstorms and summer thunderstorms have many effects on countries’ different industries such as Insurance and Airlines companies.
Also, how the organizations manage these disasters and the decisions that may follow these disasters have serious effects on customers and so finanacial and human loss may follow. II. Justification to Problem Definition:

* The unpredictable natural disasters’ effect on different industries and the wrong decisions that may follow the occurrence of such disasters may be due to: inaccurate forecasting of weather, inaccurate planning and risk analysis, also the governments and organizations over confidence in their ability to take decision and over come the risks.
Also, insufficient financial support and miscommunication results in higher civil and human loss.

As we examine the consequences of natural disasters several issues must be considered:

* Many countries lack the knowledge, capacity and resources to deal with natural disasters. After a disaster the public sector is often paralyzed by damaged infrastructure and unable to cover the costs of emergency and relief efforts, let alone reconstruction work.

* Lack of overall risk planning and investment in physical resilience measures, with too much focus on post-disaster response, leads to increased loss of life, suffering and damage.

* People in poor countries are generally more exposed to natural disasters, particularly through a higher dependency on agriculture and increased vulnerability to the natural environment.

* Insurance penetration is high in developed countries. In lesser developed countries, the availability of insurance is limited and premiums are often not

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