Question

What can businesses expect directly and indirectly in the aftermath of a disaster?

Answer 1

Ans- The effect of the disasters on the businesses are referred to as the impact. Losses are the measure of the destruction or damage which can be direct or indirect. Wider impacts comprise of the long-term economic and social impacts. It is not necessary that the impacts of disasters will always create the losses but it can also create the profits.

Direct and Indirect Losses differentiate between the delayed and immediate losses. Direct losses refer to the structural or physical impacts of the disasters like the destruction of the infrastructure due to the high winds force, ground shaking or flooding, property damage and lot more. Indirect losses refer to the secondary results of the destruction such as loss of education, business interruption and loss of income.

Many losses are difficult to calculate. For example, the destruction of the sites by the natural disaster is a direct loss although measuring these losses is very difficult. The real market value of the buildings doesn't comprise of the cultural and social meaning. These more difficult to the valuable assets are known as intangible losses. As a result, disaster loss database rarely counts for environmental, cultural and psychological impact.

So, this was about what business can expect directly or indirectly in the aftermath of the disaster.

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