Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction


background image
Box 11.3 New attitudes to risk in large global businesses
Global consulting firm PricewaterhouseCoopers and UNISDR are collaborating on a global initiative to better understand and support disaster risk management in the private sector. In-depth conversations and 11 risk management workshops with 14 large companies with a global footprint and therefore increasing risk exposure took place (Table 11.1).
Table 11.1 Companies participating in a global initiative on comprehensive disaster risk management for national businesses and global corporations
(Source: GAR 13 paperPwC, 2013

GAR13 Reference PwC (PricewaterhouseCoopers). 2013.,UNISDR and PwC – Working together to reduce disaster risks., Report prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR..
Click here to view this GAR paper.
)
A few initial trends and new approaches can be identified. Senior managers consistently acknowledge that disasters have impacted their operations, and will continue to do so, with dire consequences in the future. They also recognise that indirect losses, through supply chain interruptions, can be as severe if not worse than direct losses. However, shared risks and costs represented by the wider and macroeconomic impacts of disasters are not yet fully considered.

Few global corporations collaborate actively with national and local governments across the countries in which they operate. But there is also concern among business managers that an in-depth engagement with governments may delay processes and obstruct effective business operations. There is, however, ad hoc collaboration and information sharing among industry peers.

Disaster risk management focus in most corporations remains centred on business continuity planning. Most businesses are engaging in some form of disaster risk assessment and management for their supply chains, and are increasingly moving towards the setting of risk management standards, which suppliers have to comply with.

Some corporations rely on the insurance industry for risk information and assessments, and most have only limited access to disaster risk models and information. This limits their disaster risk awareness or capacity to factor this information into investment decisions.

To date, disaster risk management usually falls under the responsibility of dedicated supply chain management functions rather than as an integral part of business development and investment planning. However, a shift is taking place where companies are moving strategic consideration of disaster risk to the level of senior management and advisory boards.

(Source: GAR 13 paperPwC, 2013

GAR13 Reference PwC (PricewaterhouseCoopers). 2013.,UNISDR and PwC – Working together to reduce disaster risks., Report prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR..
Click here to view this GAR paper.
vi )
Contact us  |  Disclaimer  |  Our Partners  |  References  |  Acknowledgements  |  PreventionWeb |  The Global Platform  |  © United Nations 2011.