Seismic risk

[1] Seismic risk has been defined, for most management purposes, as the potential economic, social and environmental consequences of hazardous events that may occur in a specified period of time.

Large corporations and other enterprises (e.g., local governments) analyze their 'portfolio' of properties, to determine how to best allocate limited funds for structural strengthening of buildings, or other risk reduction measures such as emergency planning.

In calculating the risk of each facility in the 'portfolio', potential life safety and economic losses due not only to structural damage, but also to equipment, contents and business interruption are considered.

Acquiring and analyzing the specific data for an individual building or facility is one of the most expensive and daunting aspects of seismic risk estimation.

[8] However, the changes generally do not immediately improve seismic risk in a community since existing buildings are rarely required to be upgraded to meet the revisions.