Earthquake Preparedness Makes a Difference

to Business and Society

Abstracts from Essay for BMBA 510 Leading Sustainable Enterprise

Presented by Sam Fang

Earthquake

PreparednessGlobal

PreparednessNZ

PreparednessBusiness Impact Summary

Earthquake- caused by earth crust movementPowerfully Destructive

• Ground shaking & rupture• Tsunami & floods

Christchurch earthquakes, 2011

Christchurchearthquakes, 2011

Japan tsunami,March 2011

Distribution of earthquakes

www.digitalgeology.net

Earthquake

PreparednessGlobal

PreparednessNZ

PreparednessBusiness Impact Summary

Earthquake

Preparedness

Global Preparedness

NZ Preparedness

Business Impact Summary

• No evidence: human activities earthquakes

• Earthquakes: most likely unpredictable

• What human can DO: preparedness

1) Know the hazards2) Construct safe structures3) Safety education

Earthquake Preparedness

Global Preparedness

NZ Preparedness

Business Impact

Summary

• Earthquake preparedness, China• Haicheng, Northeast China, 1975• Use precursors: land elevations, bizarre animal

behaviours, fore-shocks evacuation warning 1 day earlier the M-7.3 earthquake successful

• Sichuan, Southwest China, 2008• Steel rods replaced by thin iron wires• Quality control missing in construction• Corruption & misappropriations existed tofu-dregs buildings serious casualties & loss

Earthquake Preparedness

Global Preparedness

NZ Preparedness

Summary

• Earthquake preparedness, Japan• Earthquake Early Warning (EEW) system issued by the

Japan Meteorological Agency (JMA).

o NHK television channels (5 languages)o Mobile phone networks o Radio receiverso Internet

“The system … one of the best advance warning systems and an extremely efficient manner of moving people out of danger.” (by Dr Shailesh Nayak, Secretary in the Ministry of Earth Science in India)

Earthquake Preparedness

Global Preparedness

NZ Preparedness

Summary

www.jma.go.jp

Advance announcements delivered by EEW, Japan

www.jma.go.jp

The general public receiving EEW and responding, Japan

Earthquake Preparedness

Global Preparedness

NZ Preparedness

Business Impact

Summary

• Earthquake preparedness, Japan• Case study - OKI semiconductor manufacturer

• Before EEWo Lost > US$ 15m in 2 earthquakes hit Sendai, 2003o The plant was shut down 15ish days after each

earthquake

• After EEW, in 2 similar earthquakes latero Loss ↓ to US$ 0.2 mo Down period ↓ 4ish days respectively

Earthquake Preparedness

Global Preparedness

NZ Preparedness

Business Impact

Summary

• Earthquake preparedness, NZ• Earthquake commission (EQC) - NZ$ 5.6 b funds• Insuring residential properties owners

• Building codes 1992 Encourage innovation Water, gas, electricity, telecom pipelines– quake-resistant

Earthquake PreparednessGlobal

Preparedness

NZ Preparedness

Business Impact

Summary

Earthquake-resistant structure

Earthquake-resistant residences

• Business opportunities emerge in earthquake preparedness

• EEW - Japano System won the global bidding in Chile, 2011o NYK paid service (Free M-5 vs Paid M-3 earthquakes)o Internet paid services (Weathernews Inc, IPO in 2003)

• OKI US$0.6m investment to retrofit buildings

• Uni. of Canterbury, leading R & D in earthquake-resistant buildings

• Booming insurance industry NZ premium 10% ↑, 2011

Earthquake PreparednessGlobal

PreparednessNZ

Preparedness

Business Impact

Summary

• Earthquake is probably unpredictable• Earthquake preparedness makes a difference

• Stay resilient over the downsides of earthquakes posed to human being

• Make the best out of the emerging business opportunities to serve the society

Earthquake PreparednessGlobal

PreparednessNZ

PreparednessBusiness Impact

Summary