Economic Loss Models

Economic Loss Models are tools used to estimate the financial impact of an incident, such as a natural disaster, accident, or operational failure. They analyze how disruptions affect costs, revenue, productivity, and assets to quantify the potential economic damage. These models help organizations and policymakers understand risks, allocate resources, and develop strategies to mitigate future losses. Essentially, they provide a structured way to predict and evaluate financial consequences based on various scenarios, ensuring informed decision-making for risk management and resilience planning.