DL Consulting Inc’s risk assessment and Probable Maximum Loss (PML) analysis help our clients make informed decisions by clearly presenting the risks and potential financial losses associated with natural hazards.  This is especially valuable in areas more prone to seismic activity or that have a higher exposure to extreme wind (i.e. hurricanes).

Our risk assessment is composed of identifying the natural hazard, outlining recorded events, developing an inventory of the asset portfolio and determining the exposure/vulnerability of those assets.  The information gathered from our risk assessment is used to calculate the PML which will provide an estimate of the potential economic losses.  We combine catastrophe models with expert input from our structural engineers to provide a stronger evaluation and recommendations.

The sections below identify our risk assessment services involving PML studies:

SEISMIC RISK ASSESSMENT

The government estimates, that in any given year, earthquakes cause several billions of dollars in losses in the United States.  In recent years, seismic occurrences have resulted in even greater losses worldwide.  To reduce this economic impact, it is necessary to evaluate earthquake hazards.

DL Consulting Inc’s approach to Seismic Risk Assessment and determining the Probable Maximum Loss is to review the geological, seismological and engineering data, and use this information to estimate the level of seismic losses.

We conform with industry standards such as ASTM E2026 and ASTM E2557, and utilize the most recent data from the U.S. Geological Survey.

EXTREME WIND RISK ASSESSMENT

More than half of the costliest hurricanes in recorded history have occurred since 1995. As a result, lenders and investors are turning to consultants with expertise in Extreme Wind PMLs to help them ascertain the risks and potential financial losses due to such events.

We perform a probabilistic hurricane evaluation which uses historical data to consider all potential events, including those that may not have occurred in the past. This results in a complete and more realistic evaluation of potential losses.