Risk management has always been a complex and challenging aspect of business leadership and decision-making, but the diversity and volume of threats facing organizations today are more intense than ever before. This can be applied to a range of risk categories, including natural disasters, which are more frequent in many regions than any other time on record, and cause significant financial economic damages regularly.
Unfortunately, it does not appear as though matters are improving in this regard. Bloomberg reported that one study from the Asian Development Bank revealed that the number of storms and subsequent floods will increase two-fold within the next 17 years should carbon dioxide levels remain on their long-standing rise. Emergency management training can help to defend operations from natural and man-made disasters of any kind so long as the learning strategies are well thought out.
Weathering the storm
Business Insider reported that weather-related events have comprised 90 percent of all the disasters to have struck in the past 20 years, and that these conditions have killed 606,000 individuals and destroyed the livelihood of 4.1 billion people in that time. Citing the findings of a new study from the United Nations, the source pointed out that there are now almost as many disasters each year as there are days, with an estimated 335 annually between 2005 and 2015.
What’s more, this marked a 14 percent increase from the levels recorded between 1995 and 2004, Business Insider noted, and officials are increasingly concerned about how climate change will further impact weather conditions.
“While scientists cannot calculate what percentage of this rise is due to climate change, predictions of more extreme weather in future almost certainly mean that we will witness a continued upward trend in weather-related disasters in the decades ahead,” the news provider cited from the UN study.
Finally, Business Insider pointed out that between $250 billion and $300 billion in economic damages are recorded globally each year. Organizations need to do everything in their power to avoid becoming a victim of the next major storm, and can do so by preparing their staff members for the worst.
The International Business Times recently affirmed that insurance companies are beginning to designate major hacking events similarly to natural disasters. Considering the fact that these events are causing billions of dollars in economic losses each year, this appears to be a smart plan, the news provider mused, and one that could significantly improve protection for businesses.
Now, regardless of what types of insurance are taken out by an enterprise, the fact remains that internal preparation and defense are paramount. Outages of operations due to a storm or man-made issue can be damaging to brand images, profit margins and more, even when insurance policies are in play. By leveraging engaging learning portals to get all employees up to speed on disaster recovery and prevention best practices, the best defense will already be in place. To find out how ETI can help your company design an emergency management training program, contact us.
Article information sourced from GP Strategies.