The Valuation of a Risk Project with Continuity and Withdrawal Decisions for Catastrophic Events Forecasted

The greatest risks that modern society faces include natural disasters such as large typhoons, major earthquakes, and tsunamis, severe accidents at nuclear power plants, and disasters caused by pandemics of infectious diseases. The impact of these catastrophes is also caused by the globalization of people, goods, money, and information, including the globalization of supply chains due to today’s globalization of the economy. Pre- and post-cautionary measures against these catastrophes have a significant impact on the socioeconomic activities of people and companies. This paper analyzes the safety measures and business continuity and withdrawal strategies of companies facing risks from severe accidents.