Climate Risk Management (Jan 2021)
Analysis of business interruption risk factors of Chinese enterprises during flood disasters based on social network analysis
Abstract
Global warming has led to frequent flood disasters, which pose great uncertainty and risk to the normal operation of enterprises. To identify the key risk factors of business interruption for Chinese enterprises because of flood disasters, this study proposes an analysis framework based on social network analysis. We consider 248 cases of enterprises affected by floods reported since 2001 in China as the dataset, and quantitatively analyze the key risk factors and important factor combinations of enterprise business interruption because of floods through multiple indicators. These include the core-periphery, node centrality, and note pairings in social network analysis. The analysis results show that “factory building damage,” “production equipment damage,” and “power supply interruption” are the key risk factors of business interruption during flood disasters. The three most likely combinations of risk factors to occur simultaneously are “production equipment damage and factory building damage,” “production equipment damage and raw material damage,” and “production equipment damage and power supply interruption.”
