It can’t all be insured: counting the hidden economic impact of floods and bushfires
The Australian government’s latest budget has committed A$210 million for a new climate information service, $600 million for a new agency to promote natural disaster recovery and resilience, and $10 billion for a reinsurance fund to reduce insurance premiums in northern Australia.
That money split is symptomatic of a general focus on the impact of natural disasters – thinking about their costs in terms of direct damage to the built environment.
Lost homes and infrastructure, of course, do need to be replaced; and insurance claims do provide a neat way to calculate a tangible cost to a fire or flood.
But just because insurance numbers are solid and straightforward, we shouldn’t ignore that disasters have broader flow-on economic impacts that can’t really be insured against…
Business Resilience Strategies vs. Disaster Recovery Plans: What’s the Difference?
There’s nothing quite like the disruption and devastation inflicted by a global pandemic to highlight the importance of comprehensive risk management strategies.
During times of crisis, the terms business resilience and disaster recovery are often used interchangeably, but they are not the same thing — and you’ll likely need both. To effectively manage disruptive black swan events of the kind we’ve endured recently, it’s important to understand the distinction…