Worth

Worth or Cost is generally used to put value on potential loss caused by the disaster/danger. It is represented in terms of potential number of deaths or monetary loss.

Oftentimes, the complete Risk equation is simplified into the following equation:

Risk = Hazard x Cost

where    Cost = Exposure x Vulnerability x Worth

Where Cost/Worth is simply the damage or consequences (unit in deaths or money) caused by the Hazard. The disadvantage of this formulation is that it does not clearly show or integrates and simplifies certain components from the complete Risk equation (Exposure and Vulnerability). However, the benefit of this equation is that it allows to estimate and have a quick overview and compare Cost without knowing the exact value of vulnerability and/or exposure. If Risk is the average loss per year, the damage(Cost) is the expected amount of value lost during a disaster for the calculated Risk during the studied time window (ex: one year).

Reference:

– Advanced Quantitative Risk course. Michel Jaboyedoff, 2021