RMS: THE LEADER IN GLOBAL CATASTROPHE RISK MANAGEMENT
While catastrophes are unpreventable, their affects can be managed through the right risk-mitigation decisions, physical protections, and cutting-edge data and science. See how RMS advanced modeling techniques enable individuals, companies and governments to quantify and reduce their risk with confidence.
LEARN MORE ABOUT RESILIENCE
THE COST OF INACTION
Risks and exposures change over time. These changes must be evaluated to be understood
Potential losses may be calculated with or without intervention to mitigate the risk. Climate change is driving many changes, from sea level rise to more extreme weather events – record-breaking flooding from hurricanes, or more widespread wildfires.
Population (and exposure value) is increasing in some of the riskiest areas.
These changes must be considered to determine their impact in the years ahead.
With the use of risk metrics to explain both the risk and the costs of inaction, solutions to fund and construct initiatives to build resilience can be explored and pursued.
SEEK FIRST TO UNDERSTAND
Without an understanding of the present situation and the potential for reducing risk and building resilience, investment decision will not be optimal Undestanding disaster risk.
Understand how much risk is removed from certain mitigation actions. Consider the full distribution of risk, near and long-term. Understand the payback periods of your investments decisions.
A robust quantification of risk and resilience will open up avenues for risk transfer and broader risk financing opportunities. But without the metrics, risk financing will be inefficient at best, or impossible at worst.
Prepare for the worst, in advance. Know how your’ll respond, and put plans in place. When the time comes, you’ll be more resilient as a result.
WHAT RMS EXPERTS AND CUSTOMERS ARE TALKING ABOUT
CLIMATE CHANGE AND NCA4 PART TWO: ATTRIBUTION AND FUTURE CLIMATE CHANGE
Lately, the climate science community has spent considerable time on a topic called attribution. In this context, attribution refers to the portion of rising temperatures attributable to human activity…
DE-RISKING THE CITY
am in Wellington, New Zealand, looking out from a rainy hotel window high over the city, admiring the older wooden houses on the forested slopes. Below there are four to eight story office and retail buildings, a number of which are shrouded in scaffolding, still repairing damage from the 2016 Kaikoura earthquake…
RMS IMPACT TREK: SHARE YOUR EXPERTISE AND MAKE A DIFFERENCE
Many of us across the risk management industry actively help communities in need after natural disasters, through donations, working with organizations to promote resilience, or through on-the-ground assistance…
OWN YOUR VIEW OF RISK
START FROM A PLACE OF KNOWLEDGE, NOT UNCERTAINTY
Understand scenarios – both hypothetical and live events
Understand what risks you are exposed to and how you will respond to them
Understand specific impacts and effects
Optimize your crisis management based on real work likelihoods
Assess potential future investment decisions (e.g risk mitigation measures such as flood defences).
Quantify the impact of potential investment decisions to understand RoI
Measure the impact as you implement, to understand risk reduction and economic savings
Refine insurance pricing and drive a better bargain
Demonstrate these savings to stakeholders
Catastrophic events have the potential to not only cause direct damage to a company’s buildings, but disrupt its process and supply chains. RMS models can help appraise the vulnerability of your global production network, including partial downtime for all nodes and resulting disruptions.
Bespoke modelling of damageability and impact of catastrophe events
Use your own loss data to ensure specific experiences are captured and quantified
An independent view or risk that can be used to inform all risk-based decisions
RMS consultants can provide you with risk assessments of complex, high-value commercial and industrial exposures that may be challenging to model using standard catastrophe modeling techniques.
The rallying cry has sounded — to “close the protection gap”, — the difference between what is paid out by insurance and the total cost of some incident or disaster.
The ep curve and the resilience dividend
While the field of resilience is now more widely recognized, and the dividends that resilience concepts and planning provide are more widely appreciated, we have lacked a systematic, comprehensive way to truly measure and quantify the actual value of those returns.
GREAT LEADERS TELL STORIES: BUILD YOUR RESILIENCE NARRATIVE
The resilience debate is taking the EP curve to a whole new level.. For years, the insurance market has thought about insured loss as their resilience metric..Insured loss is likely only a small part of your concern. In fact it’s probably the part you are less concerned about – because it’s insured.
RESILIENCE METRICS: THE HEROES OF YOUR NARRATIVE
Perhaps you care about ensuring the resilience of your revenue stream, which might mean property, sales and resort tax revenue, and how that can be impacted by catastrophes. Perhaps you can build a story that you anticipate a fall in tax revenue following a disaster, so you’ll put in place some sort of risk transfer. Now your tax revenue resilience profile looks very different – and much healthier.
Perhaps you care about the protection of safe water supplies. A large catastrophe could damage pipelines, damage treatment plants, cause pollution through other impacts – and there are actions you can consider that would reduce this likelihood. If you can quantify this, set the metric, you can consider the right investment. A water-based resilience metric could also be about “avoiding getting wet” in general – it’s not a good look to have sunny day flooding.
Perhaps you care about healthcare provision. Following Sandy, many hospitals took simple resilience measures, moving expensive medical equipment from the bottom of the building to the top – it doesn’t flood on the second floor or higher…. Perhaps there are more intricate considerations around how healthcare is provided, critical facilities, associated lifelines that are needed – in each case, what’s the metric you can measure that captures this? Available patient beds? Facility up-time/downtime? Perhaps it’s broader than that – the human element – number of casualties, fatalities, and more broadly the softer duties of care that we have to people in our communities.
INDUSTRIES THAT YOU DEPEND ON
You might care about particular industries that you depend on – how will the tourist industry respond? Can people get in and out of your region? Will hotels be open? In parts of Mexico, people talk about the resilience of the Dive industry, and everything that’s adjacent to that
You might care about power generation. Generation capacity and how much of that is exposed to critical damage. Delivery mechanisms – powerlines, power storage, etc.
You might care about the road network and it’s resilience – how many miles of roads will be impacted by catastrophe and no longer used
CAPTURING THE RESILIENCE DIVIDEND IT CAN BE A CHALLENGE TO DEFINE THE METRICS THAT MATTER. BUT RMS MODELS ENABLE NEW APPROACHES TO RISK QUANTIFICATION.
BE BOLD, TOGETHER WE CAN BUILD YOUR RESILIENCE TO DISASTER
OUR PARTNERS IN RESILIENCE
RMS partners with Build Change to design and retrofit safe buildings before and after disasters by training builders to make low-cost improvements, develop safe building standards and work with local/national governments to implement positive change.gs.
RMS is a partner of the Risky Business Initiative. This effort, co-chaired by former New York City Mayor Michael Bloomberg, former Treasury Secretary Henry Paulson, and Farallon Capital founder Tom Steyer quantifies the economic risks the United States faces from a changing climate.
RMS partners with the United Nations to extend scientific expertise to key U.N. initiatives, including
+ U.N. Global Compact
+ U.N. Office of Disaster Risk Reduction
+ U.N. Caring for Climate project
+ UNEP Finance Initiative
RMS is a core partner of Rockefeller Foundation’s 100 Resilient Cities project. As a commitment to the home of our headquarters – the Bay Area – we are partnering with San Francisco and Berkeley to quantify the economic risk of sea level rise and seismic risk.
INTERESTED IN BUILDING RESILIENCE?
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