The document discusses disaster risk reduction and management in the Philippines. It defines key terms like hazard, exposure, vulnerability, capacity, and risk. It then examines specific disasters that have affected Baguio City like earthquakes and typhoons, outlining their impacts and lessons learned. The risk profile of the Philippines is also summarized, noting it is prone to earthquakes, typhoons, volcanoes and other natural hazards due to its location in the Pacific Ring of Fire. Historical seismicity data for Baguio City is also presented.
4. HAZARD
• Is a dangerous phenomenon, substance, human activity or
condition that may cause loss of life, injury or other health impacts,
property damage, loss of livelihood & services, social & economic
disruption or environmental damage...
• Could be a potentially damaging phenomenon
• It could be natural or human-induced.
4
5. EXPOSURE
• The degree to which the element at risk are likely to experience
hazard events of different magnitude.
5
6. VULNERABILITY
• Is the characteristics and circumstances of a community,
system or asset that make it susceptible to the damaging effects of a
hazard.
• This may arise from
environmental factors.
6
various
physical,
social, economic &
7. VULNERABILITY
…Continued
VULNERABILITY HAS BEEN RELATED TO THE FOLLOWING FACTORS:
Social Integration
Ethnicity
Age
Gender
Location
Status
Wealth
Income
Education
Family type
Psychological & Physiological
Locus of control
Disability
Coping-style
Individual’s perception
Lifestyle
Agility
Mobility
Experience
Britton and Walker 1991
7
8. CAPACITY
• Is the combination of all strengths and resources available within the
community, society or organization that can reduce the level of risk
or effects of a disaster.
8
9. RISK
• Is the combination of Probability of an event to happen and its
negative consequences...
R=
9
HAZARD x VULNERABILITY (exposure)
CAPACITY
10.
11. DISASTER
• A disaster is a natural or man-made (or technological) hazard
resulting in an event of substantial extent causing significant
physical damage or destruction, loss of life, or drastic change to the
environment. A disaster can be ostensively defined as any tragic
event stemming from events such as earthquakes, floods,
catastrophic accidents, fires, or explosions. It is a phenomenon that
can cause damage to life and property and destroy the economic,
social and cultural life of people.
• In contemporary academia, disasters are seen as the consequence
of inappropriately managed risk. These risks are the product of a
combination of both hazard/s and vulnerability. Hazards that strike in
areas with low vulnerability will never become disasters, as is the
case in uninhabited regions.
11
12. DISASTER
…Continued
12
CLASSIFICATIONS
Natural Disaster
A natural disaster is a consequence when a natural hazard affects
humans and/or the built environment. Human vulnerability, and lack
of appropriate emergency management, leads to financial,
environmental, or human impact. The resulting loss depends on the
capacity of the population to support or resist the disaster: their
resilience. This understanding is concentrated in the formulation:
"disasters occur when hazards meet vulnerability". A natural hazard
will hence never result in a natural disaster in areas without
vulnerability.
13. DISASTER
…Continued
13
CLASSIFICATIONS
Man-made or Human Induced Disaster
Man-made disasters are the consequence of technological or
human hazards. Examples include stampedes, fires, transport
accidents,
industrial
accidents,
oil
spills
and
nuclear
explosions/radiation. War and deliberate attacks may also be put in
this category. As with natural hazards, man-made hazards are
events that have not happened, for instance terrorism. Man-made
disasters are examples of specific cases where man-made hazards
have become reality in an event
14. …Continued
WHEN IS AN EVENT A DISASTER?
1. At least 20% of the population are affected & in need of
emergency assistance or those dwelling units have been
destroyed.
2. A great number or at least 40% of the means of livelihood such
as bancas, fishing boats, vehicles and the like are destroyed.
DISASTER
3. Major roads and bridges are destroyed and impassable for at
least a week, thus disrupting the flow of transport and commerce.
14
4. Widespread destruction of fishponds, crops, poultry and
livestock, and other agricultural products, and
5. Epidemics
NDCC Memo Order No. 4, dated 04 March 1998
15. …Continued
WHY ARE DISASTER IMPACTS INCREASING?
1. Increased in population
DISASTER
2. Climate change
15
3. Increased vulnerability due to:
• Demographic changes
• Increased concentration of assets
• Environmental degradation
• Poverty
• Rapid urbanization and unplanned development
23. JULY 16, 1990 EARTHQUAKE
…Continued
Aftershocks of the 1990
July 16 earthquake Ms=7.8
PHIVOLCS data
First 14 hours
Many aftershocks found
west of Baguio City, not
along fault trace
23
24. SUPER TYPHOON “PEPENG” {PARMA}
(September 30 – October 10, 2009)
Max Center Wind: 195 kph
Gustiness: 230 kph
Speed: 9-26 kph
Baguio City received 640
mm of rain during the 12hour period starting 8:00
am on October 8
24
25. EFFECTS ST “PEPENG” {PARMA}
a) Affected Population
Population affected in 5,486 barangays, 334 municipalities, and
33 cities in 27 provinces in Regions I, II, III, V, VI, CAR and NCR
– 954,087 families / 4,478,284 persons Breakdown per Region
The total number evacuated inside 54 evacuation centers were
3,258 families / 14,892 persons
b) Casualties
Reported deaths in CAR were mainly due to landslides while
those in other regions were due to drowning (same figure in
previous report)
465 Dead
207 Injured
47 Missing
25
26. EFFECTS ST “PEPENG” {PARMA}
…Continued
c) Damages
The total number of damaged houses were 61,869 (6,807
totally / 55,062 partially)
The estimated cost of damage to infrastructure and agriculture
were PhP27.297 Billion (infrastructure to include school
buildings and health infrastructure PhP6.799 Billion; agriculture
PhP20.495 Billion and private property PhP 0.003 Billion
Agricultural area of 428,034 hectares incurred losses of
1,052.993 MT of crops (rice, corn, high value commercial
crops, abaca and irrigation facilities)
Education facilities damaged in Regions I, II, III, V and CAR:
were 1,531 schools (1,280 Elementary and 251 High Schools)
amounting to PhP767.45 Million
26
27.
28. EFFECTS ST “PEPENG” {PARMA}
INCIDENTS
…Continued
TOTAL
ERODED RIPRAP
FALLEN TREE / IN DANGER OF
FALLING
19
SOIL EROSION / LANDSLIDE
97
FLOOD
BAGUIO
25
41
VEHICULAR ACCIDENT
1
CASUALTIES:
A) Deaths 1) Landslide
2) Accident
58
2
B) Missing
5
C) Injured
27
Note: Incidents received, monitored and recorded by CDRRMC-DOC
28
29. CITY CAMP
FLOODING
Date: October 8, 2009
Reported: 2:55 PM
Cause: Heavy volume of rainfall
could not be contained by the
drainage.
29
43. PREVIOUS DISASTERS IN C.A.R.
43
LESSONS LEARNED
LGU as the first line of defence
Early warning devise or equipment are vital in saving life
Without communication support warning and the evacuation fails
Early warning and evacuation system to attain Zero Casualty
Pre-positioning of organic resource capability for quick response
Building-back better not building-back-elsewhere
DRR measures to protect economic investments
Help must be linked to initiative. Protracted relief could breed
mendicancy, inhibit or hold back local initiative and suppress
native creativity
Demand driven vs. donors driven
Disaster Risk Reduction Plan must be considered basic input in
the Regional Development Master Plan
47. …Continued
The country is considered one of the most disaster-prone. It ranks 12th
among 200 countries most at-risk for tropical cyclones, floods,
earthquakes, and landslides in the 2009 Mortality Risk Index of the UN
International Strategy for Disaster Reduction
RISK PROFILE
Located along the
typhoon belt in the
Pacific
making
it
vulnerable to typhoons
and tsunami.
47
Average
of
20
typhoons yearly (7 are
destructive).
54. RISK PROFILE
…Continued
54
The Philippines, given its location on the earth is prone to various types
of Natural Disasters.
Located along the
Pacific Ring of Fire,
between two Tectonic
plates (Eurasian and
Pacific) which are
volcanic
and
earthquake
generators.
22 active volcanoes (5
most active).
58. Northwest segments of the
Philippine Fault Zone (PFZ):
Digdig Fault
San Manuel Fault
Tebbo Fault
Tuba Fault
Bangui Fault
Abra River Fault
Source: Phivolcs
50
100 km
N
South
China
Sea
Pacific
Ocean
Abra River
RISK PROFILE
…Continued
EARTHQUAKE GENERATORS
WITHIN CORDILLERA
Manila Trench
58
0
Baguio City
59. …Continued
0
2 SEISMIC GENERATORS
NEAR BAGUIO CITY
RISK PROFILE
Source: Phivolcs
South
China
Sea
Pacific
Ocean
Abra River
59
Tebbo Fault
located approximately
10 km Southeast of
Baguio City
70 km long
could generate a Ms 7.4
earthquake max
100 km
N
Manila Trench
Tuba Fault
West of Baguio City,
approximately 5 km
away, NW trending
50 km long
could generate a Ms
7.25 earthquake max
50
Baguio City
61. RISK PROFILE
…Continued
61
HISTORICAL SEISMICITY
The PHIVOLCS earthquake and catalogue seismicity maps shows
so far, seven (7) historically and instrumentally recorded destructive
earthquakes (Intensity VII-IX in the adapted Rossi-Forel scale) have
affected Baguio City for the past 356 years (1645-2001). This
roughly translate into a return period of at least one destructive
earthquake (Intensity VII to IX) for every 50 years. In addition, there
were four very destructive earthquakes during the 356-year period
for a return period of at least one very destructive earthquake
(Intensity VIII to IX) for every 89 years. In comparison, regional
probabilistic seismic hazard calculations by Thenhaus (1994)
yielded annual probability rates of Ms:
• 6.4 to <7.0 (1 in 23 years)
• 7.0 to <7.3 (1 in 62 years)
• Ms <8.2 (1 in 166 years)
65. …Continued
VOLCANOES OF THE CORDILLERA REGION
Benguet Province:
Kalinga Province:
1. Santo Tomas, Baguio City
4. Bumabag, Batong Buhay
2. Daclan, Bokod
5. Podakan, Batong Buhay
3. Pulag, Kabayan
6. Ambalatungan, Batong Buhay
RISK PROFILE
7. Binuluan
65
All of the above volcanoes are inactive or has no record of
eruption during historic times.
69. PREPAREDNESS
…Continued
69
CRITICAL CONCERNS
1. Does your institution have an existing Disaster Response Team /
Safety Committee?
2. If yes, is it functional?
3. Do we conduct emergency / disaster drills regularly?
4. Do we have Emergency Response Plan?
5. Do we have a Preparedness / Contingency Plan in the event of any
disaster?
6. Are there personnel / employees trained in first aid, fire fighting or
rescue?
7. Does the institution have any rescue equipment and other
emergency paraphernalia?
8. Do we have an institutionalized warning system?
9. Are there identified evacuation areas within the premises of the
institution?
73. THE PHILIPPINE DRRM SYSTEM
DRRM
Disaster legislation in the Philippines dates back in 1978, primarily
reactive approach to disasters, focusing heavily on preparedness
and response. Other relevant legislation for mainstreaming of
disaster risk reduction into development includes land-use controls
and building codes. However, building codes are not strictly
enforced and zoning ordinances which are reported to have been
relaxed over time.
73
With the approval of the DRRM (Republic Act
No. 10121) expect that there would be a
paradigm shift
emphasizing disaster
management to a disaster risk management
approach, with much greater importance given
to reducing risk. The RA was approved on 27
May 2010, and the Implementing Rules and
Regulations was crafted by the Task Force RA
10121 headed by the OCD.
74. …Continued
RISK REDUCTION AND MANAGEMENT
Systematic process of using administrative decisions,
organization, operational skills and capacities to implement
policies, strategies and coping capacities of the society and
communities
Setting of related goals and objectives in development and land use
areas.
DRRM
It involves the formulation of strategies and Plans, Programs and
Activities (PPAs)
74
75. …Continued
WHAT MUST BE DONE TO REDUCE RISK
Institutionalize Local Disaster Risk Reduction & Management Office
Establish Early Warning System
Formulation of Communication Protocol
Formulation of Evacuation Procedures at the community level and
establishments
Organize Local DRRMC and define the functional roles and
responsibilities of the members and task units
DRRM
Establish Standard Operating Procedures (SOP)
75
Hazard awareness
seminars
through
Community-Based
trainings
and
76. …Continued
WHAT MUST BE DONE TO REDUCE RISK
Integrate disaster risk reduction into the Comprehensive Land Use
Plan (CLUP) and land use planning
Integrate hazard, risk and vulnerability assessment into the
development plan
Cluster Approach on Recovery Program
Good working relationship with Warning Agencies and the Local
Media
DRRM
Installation of rain gauges on mountain slopes
76
(DENR-MGB CAR recommended that 150 mm of rainfall observed
within 24 hours would already trigger evacuation of communities in
high risk areas)
77. …Continued
WHAT MUST BE DONE TO REDUCE RISK
Strengthening of the LGU capabilities on disaster management;
Updating the hazard profile of all municipalities and to analyse data
on human induced disasters for public safety studies
DRRM
Effective flow of communication system to ensure that accurate flow
of information before, during and after disasters
77
79. …Continued
RISK REDUCTION METHOD
In the following order
1. Identify, characterize, and assess threats
2. Assess the vulnerability of critical assets to specific threats
3. Determine the risk (i.e. the expected consequences of specific
types of attacks on specific assets)
4. Identify ways to reduce those risks
DRRM
5. Prioritize risk reduction measures based on a strategy
79
80. …Continued
POTENTIAL RISK TREATMENTS
Once risks have been identified and assessed, all techniques to
manage the risk fall into one or more of these four major categories:
DRRM
80
Avoidance (eliminate, withdraw from the risk area)
Reduction (optimize resources to mitigate effects )
Sharing (risk transfer or enrol in insurance)
Retention (accept, plan - formulate ConPlan, Evac Plan, ICS and
provision of budget)
81. …Continued
DISASTER RISK MANAGEMENT STRATEGY
A comprehensive disaster risk management strategy, actively
involving stakeholders at all levels of government as well as the
private sector, local communities and civil society, is required to
implement the legislative framework and to provide coordination and
monitoring mechanisms and arrangements.
DRRM
Individual disaster risk reduction actions and programs need to be
located within this strategy, rather than treated as discrete, individual
measures. Moreover, the strategy needs to indicate specific entry
points and mechanisms for mainstreaming disaster risk reduction
concerns into both the broader development agenda and the design
and implementation of individual development initiatives.
81
82. DRRM
…Continued
82
DISASTER RISK MANAGEMENT STRATEGY
Individual line agencies and local governments are legally
responsible for implementing disaster management, as it is still
commonly referred to in department circulars and executive orders,
within their own areas of responsibility. In practice, some LGUs have
yet to even establish their disaster coordinating councils (DCCs),
while those DCCs that have been established vary in quality. In
addition, reflecting Presidential Decree (PD) 1566’s reactive
approach to DCC meetings are commonly held only on an ad hoc
basis, in response to crisis situations, rather than on a more regular
basis to discuss ongoing risk reduction initiatives, and DCCs’ risk
reduction and mainstreaming capacity and capabilities are often
very limited.
83. …Continued
RA NO. 10121
27 May 2010
14th Congress
(2007-2010)
13th Congress
(2004-2007)
12th Congress
(2001-2004)
R.A. 10121
11th Congress
(’98-2001)
83
10th Congress
(’95-’98)
9th Co2ngress
(’92-’95)
8th Congress
(’89-’92)
PD 1566
June 11, 1978
• 21 years in the
making
• 7 Congresses
• 4 Administration
86. R.A. 10121
…Continued
86
THE PHILIPPINE DISASTER RISK REDUCTION AND
MANAGEMENT SYSTEM MAY 27, 2010
An Act Strengthening The Philippine Disaster Risk Reduction
and Management System, providing for the National Disaster Risk
Reduction and Management Framework, and Institutionalizing the
Disaster Risk Reduction and Management Plan, appropriating funds
therefor and for other purposes (DRRM Act 2010)
87. …Continued
DISASTER RISK REDUCTION
…Continued
The law which transforms the Philippines’ Disaster Management
System from Disaster Relief and Response towards Disaster Risk
Reduction.
87
Bottom-up and
participatory disaster
risk reduction
Disasters as merely a
function of physical
hazards
R.A. 10121
Top-down and centralized
disaster management
Disaster mainly a
reflection of people's
vulnerability
Focus on disaster
response and anticipation
Integrated approach to
genuine social and human
development to reduce
disaster risk and adoption
of IT in DRM
88. …Continued
DISASTER RISK REDUCTION GUIDING PRINCIPLES
Institutional not personality oriented
Permanent solution not temporary or palliative
R.A. 10121
Preemptive evacuation is better than rescue
88
89. R.A. 10121
…Continued
The enactment of the Philippine Disaster Risk Reduction and
Management Act of 2010 (also known as Republic Act 10121), aims to
achieve a paradigm shift from reactive to proactive approach in
disaster risk reduction and management.
One of the main objectives of Disaster Preparedness it to “Enhance
the community with the necessary skills to cope with the negative
impacts of a disaster”.
The state of readiness for PDRRMC, MDRRMC and CDRRMC is
greatly determines the extent to which potential casualties and
damages can be reduced.
89
90. …Continued
PARADIGM SHIFT
Emergency/Disaster Management
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
/
Public awareness
Public commitment
Community actions
Education & Training
Early Warning
SOP & Plans
ICS Development
•
•
•
•
•
•
Executive/Legislative Agenda
Environmental Management
Comprehensive Land Use Plan
Risk proofing
Financial tools
Hazard identification &
Mitigation:
Vulnerability Analysis
Capacity Analysis
Risk Reduction
DANA
Relief
SAR
Incident Command System
Evacuation
Health
Preparedness
Prevention
R.A. 10121
Rehabilitation
90
•
•
•
•
•
Response
Livelihood
Housing
Lifelines
Education
Infrastructure
REACTIVE
96. DISASTER OR EMERGENCY OPCEN
• Is a central command and control facility responsible for carrying out
the principles or functions of emergency / disaster
preparedness and management at a strategic level in an emergency
situation, and ensuring the continuity of operation of a company,
political subdivision or other organization.
• An Emergency / Disaster OPCEN is responsible for the strategic
overview, or "big picture", of the disaster.
• Used in varying ways at all levels of government and within private
industry to provide coordination, direction and control during
emergencies.
96
97. DISASTER OR EMERGENCY OPCEN
…Continued
• The common functions of all E/D OPCEN is to collect, gather and
analyze data; make decisions that protect life and property, maintain
continuity of the organization, within the scope of applicable laws;
and disseminate those decisions to all concerned agencies and
individuals.
• In most E/DOC's, there is one individual in charge, and that is
the Emergency/Disaster Manager.
97
98. DISASTER OR EMERGENCY OPCEN
…Continued
BRINGS TOGETHER THE VITAL ASPECT OF :
SITUATION
ASSESSMENT AND
MONITORING
SITUATION
MONITORING
DISSEMINATION
of WARNING
INFORMATION
COLLECTION
& ANALYSIS
RESOURCE
DISPATCH, TRACKING
& REQUEST
MEDIA & PUBLIC
INFORMATION
98
Working 24/7
TASK
ALLOCATION
ACTIVATION of the
BDRRMC responders & others
With DISASTER
MNGT FUNCTION
COORDINATION &
COMMUNICATION
ACTION PRIORITIES
100. ACTIVATION
UNDERSTANDING THE COLORED ALERT STATUS & DISASTER WARNING SYMBOLS
NOTIFICATION - When an event/disaster occurs, notification is made to
all partner agencies, and CDRRMC Disaster Operations Center support
staff who needs to take actions as part of their pre-assigned tasks and
responsibilities;
BLUE ALERT (PARTIAL ACTIVATION) - An initial limited or
a post Red Alert scaled down operational condition of the
Disaster Operations Center (DOC). All field personnel go
on stand-by, assets pre-positioned for easy deployment;
RED ALERT (FULL ACTIVATION) - All primary and
secondary support agencies of the CDRRMC are on
active status/on-call, manning respective stations
along with DOC staff, while directing-coordinating
personnel/assets on a 24-hour basis during an ongoing event;
DEACTIVATION - The DOC Chief as may be directed
by the Chief Executive or Action Officer to deactivate
the alert status and normal operations of the
Disaster Operations Center resumes.
100
STAGES or LEVELS
of ACTIVATION for
DRRMCs
101. ACTIVATION
RED
…Continued
Full scale activation
• Full scale activation.
• Citywide activation of the BDRRMC’s & respective operations
centers.
• Focal members of the CDRRMC’s will be in the operations center
for fast action, coordination & decision.
• Convene a council meeting to address preparedness for response
& other concerns.
101
102. ACTIVATION
BLUE
…Continued
Partial activation
• Partial activation - whole members
• Citywide activation of the BDRRMCs & respective operations
centers
• Convene a council meeting to address preparedness for response
& other concerns
102
117. S.A.R.
Flash Flood Victim SAR, September 30-October 5, 2012
Point of Origin: Crystal Cave, Baguio City – Point of Sighting: Sitio Pacac, Tuba, Benguet
117
122. WHAT TO DO
1.
2.
3.
4.
5.
(WHO) IDENTIFY YOURSELF
(WHAT) IDENTIFY NATURE OF CALL
(WHERE) EXACT ADDRESS/LOCATION
(WHEN) STATE EXACT TIME AND DATE
(HOW) ADDITIONAL INFORMATION THAT MAY BE RELEVANT
*AFTER A CALL, ALWAYS DO VERIFICATION*
122
124. INCIDENT PROFILING
Profile of the Incident:
What
:
_____________________________________
(Type of incident)
When
:
_____________________________________
(Date and time of occurrence)
Where
:
_____________________________________
(Estimated location)
Why
:
_____________________________________
(Probable cause of the incident)
124
127. “We are not preparing for the world we live in - we
are preparing for the world we find ourselves in.”
– Michael Mabee
Prepping for a Suburban or Rural Community: Building a Civil Defense Plan for a Long-Term Catastrophe
127
In parallel to this shift in disaster management, the health sector is recognizing that better health within a community cannot be achieved through the provision of health care alone. The health sector is looking to models of population health and health promotion to address the determinants of health just as disaster management has evolved from treating the harmful agent to strengthening the community’s resilience to harm.
Tropical Storm “Ondoy” {Ketsana} was quickly followed by Super Typhoon “Pepeng” {Parma} (affected Northern Luzon October 2 – 10, 2009).
Super Typhoon “Pepeng” {Parma}affected Northern Luzon October 2 – 10, 2009.
Based your presentation with your observation and experiences from previous disasters Demand driven vs. donors driven means relief or assistance extended by fit the requirements of the victims and not according to the desire of the donor
Preparedness cycle helps in the development/improvement of a plan.The advantage of continuous training or the execution of the preparation cycle is that it becomes part of their (the participants) routine and reflex.
72-Hour Survival Kit depends on the needs of a family or an individualThe kit is should be good for 72-hours (3 days) or longerNote the word “needs” and not wants
DRR is a systematic approach and application of policies, strategies and practices to minimize vulnerabilities and disasters in the community-To avoid (prevent) or limit (mitigate and prepare) the adverse impacts of hazards -DRR policies 2 fold aims: to be resilient to natural hazards while ensuring that development efforts do not increase vulnerability to these hazards
Institutionalize Local Disaster Risk Reduction & Management Office. The establishment of this independent body or office to ensure continuity of the programs on disaster management and strengthened the effective coordination of the various institutions for more efficient management. Likewise, the office will serve as a venue for disaster management seminars and trainings, and conduct of drills and exercise due to the availability of facilities and resources and competent staff.
90% of the Cordillera consists of mountain slopes, the steeper the slope it is more vulnerable to mass movement DENR-MGB CAR has recommended that 150 mm of rainfall observed within 24 hours would already trigger evacuation of communities in high risk areas)The Oct 2009 incident will serve as the bench mark for the susceptibility of the region from massive slides.Baguio City received an average 17 mm normal rainfall everyday if the span of 24 hours 685 mm of rainfall will already trigger slides
Risk avoidanceThis includes not performing an activity that could carry risk. An example would be not buying a property or business in order to not take on the Legal liability that comes with it. Another would be not be flying in order to not take the risk that the airplane were to be hijacked. Avoidance may seem the answer to all risks, but avoiding risks also means losing out on the potential gain that accepting (retaining) the risk may have allowed. Not entering a business to avoid the risk of loss also avoids the possibility of earning profits. Hazard PreventionHazard prevention refers to the prevention of risks in an emergency. The first and most effective stage of hazard prevention is the elimination of hazards. If this takes too long, is too costly, or is otherwise impractical, the second stage is mitigation.Risk reductionRisk reduction or "optimization" involves reducing the severity of the loss or the likelihood of the loss from occurring. For example, sprinklers are designed to put out a fire to reduce the risk of loss by fire. This method may cause a greater loss by water damage and therefore may not be suitable. Holon fire suppression systems may mitigate that risk, but the cost may be prohibitive as a strategy.Acknowledging that risks can be positive or negative, optimizing risks means finding a balance between negative risk and the benefit of the operation or activity; and between risk reduction and effort applied. By an offshore drilling contractor effectively applying HSE Management in its organization, it can optimize risk to achieve levels of residual risk that are tolerable. Modern software development methodologies reduce risk by developing and delivering software incrementally. Early methodologies suffered from the fact that they only delivered software in the final phase of development; any problems encountered in earlier phases meant costly rework and often jeopardized the whole project. Outsourcing could be an example of risk reduction if the outsourcer can demonstrate higher capability at managing or reducing risks. For example, a company may outsource only its software development, the manufacturing of hard goods, or customer support needs to another company, while handling the business management itself. This way, the company can concentrate more on business development without having to worry as much about the manufacturing process, managing the development team, or finding a physical location for a call center.Risk sharingBriefly defined as "sharing with another party the burden of loss or the benefit of gain, from a risk, and the measures to reduce a risk."The term of 'risk transfer' is often used in place of risk sharing in the mistaken belief that you can transfer a risk to a third party through insurance or outsourcing. In practice if the insurance company or contractor go bankrupt or end up in court, the original risk is likely to still revert to the first party. As such in the terminology of practitioners and scholars alike, the purchase of an insurance contract is often described as a "transfer of risk." However, technically speaking, the buyer of the contract generally retains legal responsibility for the losses "transferred", meaning that insurance may be described more accurately as a post-event compensatory mechanism. For example, a personal injuries insurance policy does not transfer the risk of a car accident to the insurance company. The risk still lies with the policy holder namely the person who has been in the accident. The insurance policy simply provides that if an accident (the event) occurs involving the policy holder then some compensation may be payable to the policy holder that is commensurate to the suffering/damage.Some ways of managing risk fall into multiple categories. Risk retention pools are technically retaining the risk for the group, but spreading it over the whole group involves transfer among individual members of the group. This is different from traditional insurance, in that no premium is exchanged between members of the group up front, but instead losses are assessed to all members of the group. Risk retentionInvolves accepting the loss, or benefit of gain, from a risk when it occurs. True self insurance falls in this category. Risk retention is a viable strategy for small risks where the cost of insuring against the risk would be greater over time than the total losses sustained. All risks that are not avoided or transferred are retained by default. This includes risks that are so large or catastrophic that they either cannot be insured against or the premiums would be infeasible. War is an example since most property and risks are not insured against war, so the loss attributed by war is retained by the insured. Also any amount of potential loss (risk) over the amount insured is retained risk. This may also be acceptable if the chance of a very large loss is small or if the cost to insure for greater coverage amounts is so great it would hinder the goals of the organization too much.