Page 69 - Risk Report 2024

IRMSA
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RISK REPORT 2024/25

Longer-term response to address risk

sustainably

Risk drivers Response strategies Impact

Weather extremes due to global/ Global and regional weather modelling to forecast impact of Gradual
regional warming (new areas for weather on land use, early planning to support and stabilise benefits in
tropical weather, new deserts), crop land use. medium term
failures and forced crop changes.

Extreme winds, sandstorms, Property and utility resilience reviews for extreme wind Potentially
accelerated bush and forest fires, and fire, improved air-based firefighting, ground-based good in short
property and infrastructure damage. transmission lines in open or forested areas. term
Threat Identification Physical Resilience Supply Chain Vulnerabilities

Conduct comprehensive risk Evaluate and improve the Assess the vulnerability of Extreme rainfall (atmospheric rivers), Model rain/water accumulations, update and expand flood Medium term:
assessments and business resilience of facilities, supply chains to weather- regional flooding, soil displacement, scenarios past worst historical cases, confirm that storm Moderate
impact analyses to identify equipment, and infrastructure related disruptions and develop property and utility damage. water drains are functioning.
potential threats posed by to withstand extreme weather contingency plans, e.g. diversify
extreme weather events and conditions, e.g. reinforce suppliers, secure alternative
climate change (include mapping buildings, install backup power transportation routes, and maintain
out locations and operations systems, and upgrade drainage buffer stocks of critical materials or Extreme hailstorms, destruction of Implement hail resilience/ice accumulation tests for Highly effective
that are particularly vulnerable and flood protection systems. components. assets, infrastructure, and crops. commercial buildings and PV farms as part of insurance cover if linked to
to events like flooding, droughts, conditions. insurance
heat waves, or severe storms).

Data Resilience Alternative Work Spaces Emergency Response and Extreme cold/snowstorms, blocked Model extreme cold and snowstorm regional exposures, Short term:
Protect critical business data Develop temporary relocation Evacuation roadways, damaged infrastructure, related prevention of access to have emergency plans for Reasonable
communities.
utility/service failures.
from weather-related damage or of operations or remote work Establish comprehensive emergency
power outages, with robust and arrangements to deploy in the response and evacuation plans for
accessible data redundancy and event of disrupted access to employees and customers (with Increased severity and frequency of Increase use of parametric covers and mutual risk pools Medium term:
recovery systems, such cloud- primary business locations due regular drills and training sessions storms, withdrawal of insurance cover. across countries and regions, also for localised farm groups. Effective
based or off-site data centres. to extreme weather events. to ensure effective execution during
emergencies).
Ice melts and rising oceans, flooding, Model ocean surge exposures, research options to raise and Long term
Risk Financing Employee Support Stakeholder Coordination threats to shore-based communities, protect beaches and tourism areas. planning
economic crises.
Review insurance policies in Develop arrangements to support Collaborate with local authorities,
context of dynamic BCPs and to employees affected by extreme emergency services, and community
cover weather-related risks, such weather events, e.g. temporary organisations to coordinate Sources:
as property damage, business housing, transport assistance, response efforts and agree to share • Climate Action. United Nations https://www.un.org/en/climatechange/paris-agreement [Accessed 20 April 2024]
interruption, and liabilities. counselling services, access to resources during extreme weather • Steffen, W., Richardson, K., Rockström, J., Cornell, S.E., Fetzer, I., Bennett, E.M., Biggs, R., Carpenter, S.R., de Vries, W., de
necessary items such as meals, events. Wit, C.A., Folke, C., Gerten, D., Heinke, J., Mace, G.M., Persson, L.M., Ramanathan, V., Reyers, B., and Sörlin, S. (2015) Plane-
water, blankets, and clothing. tary boundaries: Guiding human development on a changing planet. Science, 347(6223), pp736-747.
• UNEP FI (United Nations Environment Programme). (2024) 2024 Climate Risk Landscape Report. Geneva, Switzerland:
Climate Change Mitigation Continuity Testing External Trend Monitoring UNEP FI.

Implement sustainable and Regularly review and test Collaboration with industry experts, • WEF (World Economic Forum). (2024) The Global Risks Report 2024, 19th Ed. Geneva, Switzerland: WEF [Online] Available
climate friendly practices, extreme weather scenarios and meteorological agencies, and at: https://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2024.pdf [Accessed 24 April 2024]
e.g. reduce greenhouse gas BCPs to identify gaps and refine relevant Government authorities
emissions, promote energy responses. to stay informed on the potential
efficiency, and support renewable impacts of climate change on
energy sources. operations.