Extreme rainfall, hurricanes, droughts, and wildfires have captivated the nation this year. People have lost their homes, businesses and lives. If it seems like these events are happening more and more, it’s because they are.

Navigating climate risk in the ever-changing environment can be difficult, but it’s imperative you set your business up for success and have a business continuity plan in place to account for these growing risks.

From 1980 to 2022, the annual number of billion-dollar disasters, adjusted for inflation, averaged 8.1. Over the past five years, the U.S. has averaged 18 billion-dollar disasters a year.¹  

From the Maui wildfires to Hurricane Hilary, the United States surpassed the record of billion-dollar disasters. In 2023, there have been 23 confirmed weather/climate disaster events with losses exceeding $1 billion each to affect United States. These events included flooding, severe storms, tropical cyclones, wildfires, and winter storms. Overall, these events resulted in the deaths of 253 people and had significant economic effects on the areas impacted.² The question remains—these disasters are here, how can you prepare and mitigate the associated risks?

Businesses can experience many disruptions as a result of natural disasters. Below we break down a few of the consequences that could affect your business.

There is an emotional component here as well. With natural disasters often comes displacement. Take time to consider the effect the disaster has on your workforce.

Today, organizations face a wide range of risks that can threaten the resiliency of their operations. The losses caused by natural disasters should not be taken lightly. These threats are omnipresent and can be difficult to prevent.

Yet there are significant steps organizations can take to mitigate the impact on your organization when a natural disaster strikes. Developing and implementing a Business Continuity Plan (BCP), to address the risk of business interruption is a core risk management practice. A BCP better positions an organization to withstand financial or reputational harm.

Business continuity planning is the process of identifying the parts of your company that are essential and critical to your operations and creating a plan to sustain or recover them if a business interruption occurs. Your company’s business continuity plan, in conjunction with business interruption insurance, form your business continuity management (BCM) program. Businesses with strong BCM programs are more resilient in the face of emergencies and disasters.

A Crisis Management Plan identifies the processes and steps to be taken during a crisis event or situation. Ideally, a Crisis Management Plan should be a subpart of your comprehensive BCP. Natural disasters are a key instance where having a Crisis Management Plan is essential.

Creating a Crisis Management Plan is one way a company can bolster and instill more trust in their risk management initiatives. Having the capacity to manage and preemptively address a crisis can enhance the company’s risk profile.

This could also safeguard the company’s financial health and reputation by ensuring stability during a crisis through a well-implemented plan. A robust Crisis Management Plan acts as a roadmap during a crisis. It can mitigate the effect on your earnings while preserving your credibility and reputation.

At MJ, we’re here to help you mitigate the risks you face and better prepare you for future disasters. While we can’t prevent the disaster from happening, we will be there in your time of need.

Contact us today to learn more about our risk services and consultative, personal approach.