Proposal submitted to an innovation contest organized by Simon Fraser University in Vancouver, Canada. The central idea was to create a financial tool that essentially hedge against risk of submerged properties in case of sea level rise due to climate change.

1. rise
riseRISK MACHINE
RISK MACHINE
A Proposal for a Sea Level Risk Economy
Living and thriving with climate change

2. summary
We are introducing the core principles of a new economy that
is based on the risk of property submergence as a direct
consequence of sea level rise.
We developed an algorithm that assigns a tradable
risk currency to properties that are expected to be
submerged, affected by floods or become coastline.
Land users will then be able to participate in this new
economy by trading this currency based on their property’s
location and the desired future use of the land in question.
riseRISK MACHINE

3. key
concepts
riseRISK MACHINE
Virtual currency assigned to land users
R$ is calculated by the Rise Risk Machine algorithm
R$ is a function of value of property loss as a result of not taking pre-emptive action
and risk of submergence
R$ is used only to fund development projects that mitigate loss of property value
R$ is a virtual currency that can't be traded for real dollars
Risk Currency (R$)

4. key
concepts
riseRISK MACHINE
Every participant in the Risk Currency Market will be assigned a number of
RiseCoins (R$) equal to the loss of property value after flooding occurs
RiseCoins will be “minted” using the BlockChain protocol that powers Bitcoin and
other cryptocurrencies
The participants will then be free to allocate their RiseCoins to different projects to
either prevent their land from flooding, or developing alternative uses.
Over time the different projects will acquire different amounts of RiseCoins, and this
will guide governments and the financial community on different courses of action
Economy of Risk

5. Example of Use
riseRISK MACHINE
Register InvestEvaluateRise Risk
Machine
Users register in this
program creating a
profile with details of
their land use
They go online or
download the RRM
app
Based on the user’s
property location the user
can visually determine what
is the value of his property
for a specific sea level rise
and know the available
“risk currency”
The user can then make
proper investment
decisions in projects that
mitigate property value loss

6. how it
works
Algorithm Decision
Support
System -
Website/App
Marketing
Strategy
riseRISK MACHINE

7. how it
works
Algorithm Decision
Support
System -
Website/App
Marketing
Strategy
This is the central component of this proposal; it calculates a new tradable
currency called “risk currency” as well as land revaluation in dollars for a given
increment of sea level rise.
riseRISK MACHINE

8. how it
works
Algorithm Decision
Support
System -
Website/App
Marketing
Strategy
Interactive website and app that displays land revaluation and calculated “risk
currency” for a specific address in Metro Vancouver. It also offers a comparison
of these values for alternative scenarios of land use.
riseRISK MACHINE

9. how it
works
Algorithm Decision
Support
System -
Website/App
Marketing
Strategy
Action plan to introduce this proposal to the public and other stakeholders.
riseRISK MACHINE

10. how it
works
RRM Algorithm
Inputs
1. Address of Property
2. Sea Level Rise (in meters)
3. User Profile (Scenarios)
• I own land
• I rent land
• I want to buy land
• I want to sell land
1. Risk Currency
2. Land Valuation (in dollars)
OutputsAlgorithm (internal coefficients)
1. Geographical Data
Libraries
2. Submergence Factor
3. Land Value
• Taxes
• Fees
• Maintenance
• Others
riseRISK MACHINE

11. riseRISK MACHINE
Input: Sea Level Rise
riseRISK MACHINE
Input: Address Input: Customer Profile
Output: Property in Map
Output:
Land value and
Risk currency
Output:
List of projects for
investment
Projected Value
RISK CURRENCY:
$75,000
LAND VALUE:
$400,000

12. how it
works
Marketing
Strategy
Social Media
• Early awareness campaign
• Use of most popular
channels
• Objective is to have a
pervasive message of
positivity
Media BlitzLetter to Owners
• Direct approach to owners
from provincial government
• Introduction of the “risk
currency” and its benefits
• Why am I receiving this letter?
• How does this work?
• How will this affect my property?
• Where can I get more information?
• Who can I speak to if I am not
comfortable using the internet?
• How much time do I have before
changes will come into effect?
• How can I appeal the new
assessment of risk assigned to my
property?
• Mass media
communications
• Showcase of interviews
with key stakeholders:
financial institutions,
government, property
owners, business orgs, etc.
riseRISK MACHINE

13. Appendix
riseRISK MACHINE

14. RRM AlgorithmriseRISK MACHINE

15. DSS screensriseRISK MACHINE

16. how it
works
DSS App
Input: Address
Input: Sea Level Rise
Input:
Customer
Profile
Output: Highlighted
Property on Map
Output:
Risk Currency and Land
Value for current profile
Output:
Risk Currency and Land
Value for other land
uses (scenarios)
riseRISK MACHINE

17. how it
works
DSS App
Website Mobile App
riseRISK MACHINE