## 2 Background Knowledge
### Asset and Disaster Risk Management  
An asset is a tangible or intangible item that has value or potential value to a person or organization [17]. Asset management, as defined by international standards, is the coordinated effort of an organization to maximize value from its assets by balancing risk, cost, opportunity, and performance throughout their lifecycles [18]. In the context of urban resilience, asset management is critical for preventing future unfavorable events and ensuring assets are prepared for them. Public and private sectors, as well as regional and state governments, must invest in asset resilience to achieve this [19; 20]. The asset management approach plays a crucial role in allocating limited resources (people, money, time, natural resources, etc.) to initiatives that yield the greatest value for all stakeholders throughout the lifecycle of urban assets and systems. Many organizations worldwide have implemented Asset Management Systems (AMS) that comply with the ISO 55000 family of standards to develop consistent strategies and coordinate the delivery of resources and tasks to maximize profitability [21; 22; 23]. Asset management is a crucial component of risk management, as it addresses the financial and reputational risks associated with speculation. According to international standards on risk management (ISO 31000), risk is defined as \"the effect of uncertainty on objectives\" and risk management involves \"coordinated activities to direct and control an organization with regard to risk.\" These standards provide guidelines for designing, implementing, and continually improving risk management processes throughout an organization [24]. Figure 1: Background knowledge for improved multidisciplinary decisions towards sustainability and urban resilience. The decision-making process in risk management involves assessing the appropriate level of risk for a certain choice and determining the steps to be taken in case of a risk event. Both risk management and asset management aim to ensure that resources are allocated to initiatives that benefit the community [25; 26; 27]. To build urban resilience, national and municipal governments must establish local disaster risk-management strategies to mitigate the impact of climate change [28]. This includes regularly reporting on small-scale onset hazardous occurrences that are not recorded in global catastrophe loss databases [29]. It is also crucial to acquire consistent data on losses from all dangers and underlying concerns. However, the implementation of findings from the Habitat III Urban System Model may face obstacles due to a lack of transparency, flaws in urban governance, and constraints in financial and human resources. These factors can lead to socioeconomic evaluation biases and lower performance of urban resilience. Vulnerability assessment is an important aspect of the climate risk assessment process, as it identifies potential disruption to the community caused by climatic impacts. Urban risk governance involves the diverse roles and responsibilities of different players in minimizing urban risks. The government plays a crucial role in developing national policies, implementing mitigation measures, and establishing emergency response procedures. Local governments also play a role in urban risk management through land-use planning, construction rules, disaster preparedness programs, and evacuation plans. Community members, including households and individuals, can also improve resilience by implementing disaster preparedness measures [30]. Private sector organizations play an important role in urban risk management, as they develop buildings or infrastructure projects that are sensitive to natural disasters. Civil society organizations provide input into public decision-making processes about policy implementation targeted at decreasing dangers for communities living in high-risk areas.