The PCRAM is made available for information only and with the understanding and expectation that each user will, with due care and diligence, conduct its own investigations and evaluations, and seek its own professional advice, in considering investments’ financial performance, strategies, prospects or risks, and the suitability of any investment therein for purchase, holding or sale within their. [...] Asset operations and management: The dynamic nature of PCR means that it should be considered during the operational phase of assets and considered in the operating expenses (OPEX) and capital expenditure (CAPEX) plan. [...] To reflect PCRAM and its anticipated improvements (multi-hazard function, insurability function and systems benefits), the three terms of the PCR equation could be refined from current practice to seek out the investment opportunity: PCRAM step 1: Assessing baseline uncertainty PCRAM steps 2 and 3: Quantifying vulnerability and resilience building PCRAM step 4: Identifying optimum thresholds to re. [...] Furthermore, given the time horizon distinctions for real estate compared to infrastructure assets outlined earlier in the paper, it is worth considering the question of whether the high risks possibly be more manageable in the long term, assuming CAPEX is spent? If they are, then the shorter-term time horizon of the real estate investment could mean the risk remains material. [...] 20 In 2023, for the first time in the Interconnected Disaster Risks report, the UN classified an economic area – the un-insurability of homes and property – at the same level of systemic risk as the extinction of species.
Related Organizations
- Pages
- 19
- Published in
- United Kingdom
Table of Contents
- Acknowledgements 2
- Disclaimer 2
- Contents 3
- Executive Summary 4
- EXECUTIVE SUMMARY 4
- INTRODUCTION 5
- Introduction 5
- Background 5
- The PCRAM Process 5
- Key challenges identified 6
- INTRODUCTION 6
- Scope Infrastructure and Real Estate 7
- INTRODUCTION 7
- CURRENT PRACTICE 8
- Current practice 8
- CURRENT PRACTICE 9
- Real assets investment value chain 9
- CURRENT PRACTICE 10
- Investment stages and processes 10
- INTEGRATING PCRAM ALONGSIDE INVESTMENT PROCESSES 11
- Integrating PCRAM alongside investment processes 11
- Strategic identification of key drivers of uncertainty 11
- INTEGRATING PCRAM ALONGSIDE INVESTMENT PROCESSES 12
- A cashflow projection that accounts for capital or operational 12
- HOW PCRAM MAPS WITH THE PCR EQUATION 13
- How PCRAM maps with the PCR equation 13
- PCRAM step 1 Assessing baseline uncertainty 14
- Hazard uncertainty drivers 14
- HOW PCRAM MAPS WITH THE PCR EQUATION 14
- Asset uncertainty drivers 15
- Location uncertainty drivers 15
- HOW PCRAM MAPS WITH THE PCR EQUATION 15
- PCRAM steps 2 and 3 Quantifying vulnerability and resilience building 16
- HOW PCRAM MAPS WITH THE PCR EQUATION 16
- PCRAM step 4 Identifying optimum thresholds to refine exposure 17
- HOW PCRAM MAPS WITH THE PCR EQUATION 17
- Conclusion and next steps 18
- CONCLUSION AND NEXT STEPS 18
