Title: The reference installation approach for the estimation of industrial assets at risk

Authors: Jutta Geldermann, Mirjam Merz, Valentin Bertsch, Michael Hiete, Otto Rentz, Isabel Seifert, Annegret H. Thieken, Dietmar Borst, Ute Werner

Addresses: Production and Logistics, University of Gottingen, Platz der Gottinger Sieben 5, 37073 Gottingen, Germany. ' Institute for Industrial Production (IIP), University of Karlsruhe (TH), Hertzstr. 16, 76187 Karlsruhe, Germany. ' Institute for Industrial Production (IIP), University of Karlsruhe (TH), Hertzstr. 16, 76187 Karlsruhe, Germany. ' Institute for Industrial Production (IIP), University of Karlsruhe (TH), Hertzstr. 16, 76187 Karlsruhe, Germany. ' Institute for Industrial Production (IIP), University of Karlsruhe (TH), Hertzstr. 16, 76187 Karlsruhe, Germany. ' GeoForschungsZentrum Potsdam, Section 5.4: Engineering Hydrology, Telegrafenberg, 14473 Potsdam, Germany. ' GeoForschungsZentrum Potsdam, Section 5.4: Engineering Hydrology, Telegrafenberg, 14473 Potsdam, Germany. ' Institute for Finance, Banking and Insurance, University of Karlsruhe (TH), Fritz-Habler-Weg 4, 76128 Karlsruhe, Germany. ' Institute for Finance, Banking and Insurance, University of Karlsruhe (TH), Fritz-Habler-Weg 4, 76128 Karlsruhe, Germany

Abstract: When natural disasters and extreme events such as storms, floods and earthquakes occur, it is not only people, residential buildings and infrastructure that are seriously affected, but also industry. Direct losses to installations as well as indirect losses, e.g., the interruption of production, can cause severe damage to companies and the economy as a whole. For a comparative and quantitative risk assessment, and being a prerequisite for emergency planning and crisis management (e.g., planning of mitigation measures), a financial appraisal of industrial assets at risk is needed. This paper presents the reference installation approach, which is a methodology that allows a consistent and transparent assessment of individual industrial asset values. The results of this bottom-up approach can be used for a detailed spatial mapping of industrial assets taking into account the characteristics of different sectors. [Received 9 May 2007; Revised 31 August 2007; Accepted 11 September 2007]

Keywords: natural hazards; risk assessment; economic impact; direct losses; industrial assets; asset estimation; reference installation approach; natural disasters; extreme events; emergency planning; crisis management; emergency management; spatial mapping.

DOI: 10.1504/EJIE.2008.016330

European Journal of Industrial Engineering, 2008 Vol.2 No.1, pp.73 - 93

Published online: 18 Dec 2007 *

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