Patent ID: 8010387

Claim:
A computer-implemented method for structure risk management, the method comprising acts of: receiving, as an input by an automated programmed electronic computer, a site loss parameter, wherein the site loss parameter is a loss associated with a physical structure; receiving, as an input by the automated programmed electronic computer, a loss given a loss-basis event, wherein the loss given a loss-basis event is a loss associated with a physical event; determining, with the automated programmed electronic computer, a statistic of loss per unit time for presentation to a user, wherein the statistic is a product of the site loss parameter and the loss given a loss-basis event; wherein the statistic is an average repair cost per unit time resulting from the physical event; wherein in the act of determining a statistic of loss per unit time, the statistic of loss per unit time is an annualized expected loss (EAL), the EAL being an average repair cost per year resulting from future seismic activity, the average being an average selected from a group consisting of a mean, median, and mode; wherein in the act of determining a statistic of loss per unit time, the EAL is further determined according to the following, EAL= H ·PFL, wherein H represents the site economic hazard parameter; wherein PFL represents a probable frequent loss, mean loss conditioned on an occurrence of S EBE ; where S EBE represents a seismic intensity associated with an economic-basis-earthquake (EBE), whereby through calculating the EAL, the EAL is used to manage seismic risk; wherein H is calculated according to the following, H = G NZ ln ⁡ ( G NZ / G EBE ) , wherein G NZ represents a mean annual exceedance frequency of S NZ , S NZ represents a seismic intensity associated with initiation of loss, and G EBE represents a mean annual exceedance frequency of S EBE , wherein G EBE is calculated according to the following, G EBE =−ln(1− P EBE )/ t EBE , wherein P EBE represents a probability of exceeding S EBE in time t EBE , and t EBE represents a planning period associated with EBE; and presenting to a user through a display the statistic of loss per unit time.