Using the experience gained in the reinsurance industry, it calls on public and private institutions to undergo stress tests, which would include reporting their maximum probable annual losses due to extreme events, against their current assets and operations.
This quantity is defined as the maximum annual rate of soil loss by erosion that will permit high soil productivity for an indefinite period of time.
On their 2001 return, the Bushes reported a $3,000 net capital loss, the maximum annual amount that can be claimed to help offset income when stocks, bonds or other assets are sold for less than their purchase price.
The risk assessment was performed using several Comprehensive Approach to Probabilistic Risk Assessment modules as well as the R-System, obtaining results in terms of traditional metrics such as loss exceedance curve, average annual loss, and probable maximum loss.
This stochastic representation of erosion permits to evaluate soil losses for the maximum annual storm, as well as annual erosion rates as a function of recurrence interval.
Table 2 Seismic risk results, average annual loss (AAL), and probable maximum loss (PML), for public and private buildings with 0 and 3% deductible levels in Manizales, Colombia Open image in new window.
Then the convolution between hazard and vulnerability was performed using the CAPRA-GIS program (ERN-AL 2011) to obtain the loss exceedance curve (LEC), from which other probabilistic risk metrics such as average annual loss (AAL) and probable maximum loss (PML) can be obtained.
Risk results are presented in terms of the average annual loss (AAL) and the probable maximum loss (PML), which are probabilistic risk metrics commonly used in actuarial mathematics.
Most ecological studies have tried to tie biological changes, such as the loss of wildflower biodiversity in the Alaskan Tundra, to either this average or to changes in the maximum annual temperatures.
