c) exposure and vulnerability

It is important to note that the exposure and vulnerability of an asset to a hazard event are not the same. For example, an asset can be very exposed to flooding due to its close vicinity to a river bank but might not be susceptible to flooding due to its flood-resistant design (Prahl et al., 2016). Hence, our physical risk quantification includes an asset’s exposure and vulnerability to a hazard event.

_{Prahl, B.F., Rybski, D., Boettle, M., & Kropp, J.P. (2016). Damage functions for climate-related hazards: Unification and uncertainty analysis. Natural Hazards and Earth System Sciences, 16, 1189–1203. https://doi.org/10.5194/nhess-16-1189-2016}