In a recent opinion piece in the journal Nature, Dr. Erwann Michel-Kerjan, a member of the faculty at the University of Pennsylvania Wharton School and a member of the Wharton Risk Center, reflected on the impact of Superstorm Sandy. In the opinion piece, he asked the central question: How resilient is your country? Noting that science continues to improve decision making, Dr. Michel-Kerjan also argued that “much more is required to make nations truly resilient to extreme events—we need to develop national risk-management strategies.”

Recounting his post-Sandy trip to Mexico City to take part in the final stages of the meeting of the finance ministers and central bankers of the G20, he noted that for the first time, “the group formally recognized disaster-risk financing and management as a priority.” While this represents a significant step forward, Dr. Michel-Kerjan puts forward five questions that all governments “should be able to answer, comprehensively and quantitatively, five questions that I see as pillars of national risk management.”

1. What risks do we face and where?
2. What assets and populations are exposed and to what degree?
3. How vulnerable are they?
4. What financial burden do these risks place on individuals, businesses, and the government budget?
5. How best can we invest to reduce those risks and strengthen economic and social resilience?