Climate Risk Is Growing. Is Your Company Prepared?

Most people don’t have a strategy for for how to handle the worsening perils of flooding, wildfires and extreme heat. They should adopt a four step process for protecting their property, whether it be a home or a business. First, they should prioritize how important climate risk is compared to other risks. Then, they should do whatever they can to transfer climate risk to others; classically, this can be done through insurance. Next, they should take steps to avoid exposure, either by relocating or selling their property. Finally, they should take steps to minimize damage following a storm or wildfire by “hardening” their property, rehearsing and refining their prepared response in the case of an emergency and putting in place a plan to rebuilt (by, for instance, having prior arrangements with remediation companies and builders). Families, organizations, and businesses need to assess how big these exposures really are for them — and act now to prioritize, transfer,…

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This article was written by John D. Macomber and originally published on hbr.org