The Role Of The Public Sector In Catastrophic Risk Management

This paper approaches the impact of natural catastrophes on budget balance and also the principal methods of disaster risk management. Taking into account Romania’s exposure to flood risk and earthquake risk we’ll pay a special attention to these two categories. We’ll analyze how public sector is involved in managing catastrophic risk both in our country but also in other Member States of European Union. After identifying public institutions responsible for an appropriate management of catastrophes consequences three types of actions will be presented: preventive, operational and recovery actions. Also, the steps taken by our country in order to align to European regulation will be discussed. Given the impact of extreme events in most cases local financial capacity is exceeded. The Member States can access European Solidarity Fund, the conditions of applying for intervention being presented. A numerical illustration will be provided for a better image on the budget that management of catastrophic risk involves.