But to make climate change accessible, maybe it makes sense to look at this a little more granularly: What does it mean for your company? Even in the short term, the effects of climate change increase the risk exposure of organizations and open them up to new threats with serious consequences.
Here are 3 ways climate change is increasing your enterprise risk.
#1: Extreme Weather Increases Your External Risk Exposure
If you’ve ever had a natural disaster disrupt your business, you know that it can be a serious problem. Whether it’s a hurricane that takes out your organization for weeks or a simple power outage that results in several hours of downtime at a plant, any reduction of operating hours is going to cost you money.
Climate change is likely to make this problem worse. According to the US government’s national climate report, sea level rise and storm surge in the American Southeast could cost the region up to $60 billion each year by 2050 and up to $99 billion by 2090. MIT research has shown that since 1980, the number of storms with wind speeds over 250 km/hr has tripled. And it’s not just water and wind that is the problem—the national climate report also predicts that burned areas from wildfires in Southwest California could double by 2050.
So what do you do? Get advance warning whenever possible, and have plans in place that can be enacted quickly and by the right people. In particular, you should know exactly what elements of your enterprise are situated in high-risk natural disaster zones, and make sure you’re monitoring these areas to take quick action when an event occurs.