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Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction |
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Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction |
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From managing “disasters”
to managing “risks”
The business case for stronger disaster risk management is three-
fold: It reduces uncertainty and strengthens confidence: Orion invested US$6
million in seismic protection in New Zealand that saved the company
US$65 million (Chapter 8). It opens the door to cost savings: preventive
investments by fishermen in Mexico
saved each individual entrepreneur
US$35,000 during Hurricane Wilma in 2005 (Chapter 11). And it provides an
avenue for value creation: an Economist Intelligence Unit survey records that
63
percent of businesses see opportunities to generate value from disaster risk
reduction (Chapter 16). Businesses that have invested the most in risk management
may financially outperform their peers.
Business attitudes are changing: Embedding disaster risk management in
business processes is increasingly seen as a key to resilience, competitiveness and
sustainability
- a business survival kit in an increasingly unpredictable
world. One business survey now lists disaster risk as the
16th most important
out of the top 50 risks, and as the 6th most important driver
strengthening risk management (Chapter 16).
A new paradigm for disaster risk governance will include the
private sector: Only half the countries assessing progress against the UN
framework for disaster risk reduction (Hyogo Framework for Action) report on
active engagement with business on disaster risk management. Canada is a
notable exception with
20 private sector bodies represented on its
national platform (Chapter 15).
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