Global Assessment Report on Disaster Risk Reduction 2015
Making development sustainable: The future of disaster risk management

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It is another way of expressing the exceedance probability: a 1 in 200 years loss has a chance of 0.5 percent to occur or be exceeded every year. Annual average loss (AAL) is the estimated average loss annualised over a long time period considering the full range of loss scenarios relating to different return periods. The probable maximum loss (PML) is the maximum loss that could be expected for a given return period, for example of 250 years.
Capital stock as referred to in GAR15, and in particular in its risk assessments, is the total value of commercial and residential buildings, schools and hospitals in each country. This excludes infrastructure such as roads, telecommunications and water supply. Capital investment is measured as the total investment by the private and public sectors in a given year, using the metric of gross fixed capital formation (GFCF). Social expenditure relates to government spending on education, health and social protection. In GAR15, relative disaster risk is estimated by comparing the AAL or PML with capital stock, capital investment, social expenditure or other economic metrics, such as savings or reserves.
Bio-capacity stands for biological capacity both to produce useful biological materials as well as to absorb waste, such as carbon dioxide. It is related to the concept of ecological footprint, which is calculated by considering all of the biological materials consumed and all of the carbon dioxide emissions generated by a person in a given year. Together the two concepts provide a common basis on which to compare the biological capability of the environment with the demand placed by human populations on this capacity. Planetary boundaries refer to the limits to critical planetary systems which if crossed could lead to dangerous or irreversible change in the Earth system.
Disaster risk reduction (DRR) describes the policy objective of anticipating future disaster risk, reducing existing exposure, vulnerability
or hazard, and strengthening resilience. Disaster risk management (DRM) describes the actions that aim to achieve this objective including prospective risk management, such as better planning, designed to avoid the construction of new risks; corrective risk management, designed to address pre-existing risks; and compensatory risk management, such as insurance that shares and spreads risks.

Disaster (or emergency) management is used to refer to the cluster of measures, including preparedness and contingency planning, business continuity planning, early warning, response and immediate recovery to deal with disasters once they are imminent or have occurred.
Governance refers to the different ways in which governments, the private sector and in general all individuals and institutions in a society organize themselves to manage their common affairs. Within this broader governance concept, disaster risk governance refers to the specific arrangements that societies put in place to manage their disaster risk.
i See UNISDR, 2009. Terminology on Disaster Risk Reduction. Geneva, Switzerland: UNISDR.
Tropical cyclone
Capital investment
Capital stock
Social expenditure
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