The LEC represents the annual frequency whereupon a determined economic loss will be exceeded. It is the most important and strongest measurement of risk, since it provides basic information for the planning and appropriation of the resources necessary to fulfil particular management objectives. The LEC can be calculated based on the greatest probable event of a year or uniformly for all possible events, based on their recurrence interval. The latter approach is preferred, given that it allows for considering more than one disaster event per year.
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