Multi-Hazard Mitigation Plan: Glossary

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Chapter 22:Glossary Loss-Any reduction in value, or well-being to individuals, groups or society. A loss is a cost. Losses avoided are benefits. Direct Losses-Losses linked directly to a hazard event including all damages and employment losses due directly to the closure of damaged facilities. Indirect Losses -All losses other than direct losses. Indirect losses include economic losses due to dislocations in undamaged factories or commercial ventures,banking, and insurance as well as non financial losses such as loss of historical resources,pain, and suffering. Maximum Foreseeable Loss - An estimate of losses assuming the worst combination damage and disruption to a business. This estimate allows consideration of the worst possible consequences. Mitigation-All actions taken to reduce or eliminate long-term risk to people and property from hazards and their effects. Mitigation activities contrast with short-term risk-reducing actions such as preparedness,response and recovery measures and risk spreading measures such as insurance. Multiplier- The ratio between the direct effect on output or employment and the full effect including the effects of second order rounds or spending. (From OMB A-94) Natural Hazard- The probability of occurrence of a potentially damaging natural phenomenon within a specific period of time. Some of these include tropical cyclones, hurricanes, drought, earthquakes, floods, landslides,tsunamis, and volcanic eruptions. Net Present Value- The discounted monetized value of expected net benefits (i.e., benefits minus costs). This is the standard criterion for deciding whether a government program can be justified on economic principles. Net present value is compute by assigning monetary values to benefits and costs, discounting future benefits and costs using an appropriate discount rate, and subtracting the sum total of discounted costs from the sum total of discounted benefits. (From OMB A-94) Opportunity Cost- The value of alternatives foregone to achieve the mitigation activity. It can be thought of as the value of the good or service in its best alternative use. Present Value-The value of a stream of benefits or costs when discounted back to the present time. Probable-Likely to occur; reasonably expected;realistic. Probability and Frequency- A measure of how often an event is likely to occur. Frequency can be expressed as the average time between occurrences or exceedances (non- exceedances) of an event or the percent chance or probability of the event occurring or being exceeded(not exceeded)in a given year or a longer time period. 22-3 Hawaii County Multi-Hazard Mitigation Plan