Can We Hedge an Investment Against A Potential Unexpected Environmental Disaster?

The purpose of this paper is to examine whether there is a possible hedging technique against a potential unexpected hazard, that can secure the capital invested by individuals or corporations. More specifically, the traditional hedging techniques are presented and illustrating whether they can be applicable against unexpected environmental disasters. Moreover, the evolution of hedging techniques regarding the catastrophe disasters are presented in the papers. After illustrating hazard-prone areas with the use of mapping visualization, techniques or catastrophe risk management and risk minimizations are proposed in an attempt to reduce the direct and indirect losses after a disastrous events while at the same time increase the trustworthiness of corporations and governments. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s41885-021-00085-4.