3 highlights from FM’s webinar on extreme weather

Businesses are grappling with the effects of extreme weather. How can organizations better prepare to protect critical operations, supply chains and bottom lines?

FM hosted a webinar on December 11 led by Dr. Lou Gritzo, chief science officer, alongside FM colleagues Dr. Angelika Werner, research director of natural hazards and climate, and Adriano Lanzilotto, vice president of client and partner learning. They discussed the vital role of preparedness and how accurate risk analysis and strategic planning can deliver targeted results, and they answered questions in a live Q&A.

An informal survey of attendees showed that 66% are prioritizing regular inspections of existing sites’ resilience, underscoring the importance of “boots-on-the-ground” analysis of actual risk.

To watch the full presentation, click here.

Below are highlights from the conversation.

Extreme weather is widespread, preparedness is not

2024 was the warmest year on record. As a result, the intensity and frequency of extreme weather is growing.

Citing FM’s report, Ready for the storm: Closing the extreme weather resilience gap, Werner shared, “Around two thirds of companies experienced a significant disruption in just the last three years. It's an operational reality that corporations need to deal with on a day to day basis.”

Yet preparedness falls short. Lanzilotto pointed out, “In spite of two thirds having actually experienced a severe disruption in the last three years, only 41% say that their board regularly discusses extreme weather.”

The report uncovered additional gaps in awareness. Nearly three quarters underestimated the wind and flood exposure of countries where they have business-critical operations.

Werner stressed the implications: “Losses are really driven by how well the communities and operations are actually prepared. So for businesses, the cost of inaction is really growing.”

How FM can help: The FM Resilience Index ranks 130 countries and territories across 18 resilience factors. Freely accessible, it helps you assess climate exposure across locations and supply chains.

The power of site-specific data and insights

Understanding extreme weather risk starts with science, to reveal what’s driving these shifts. Making that science actionable requires high-quality data, deep physical understanding and predictive models. Gritzo called this FM’s “three-legged stool approach.”

Making this even more powerful is FM’s emphasis on site-specific data.

“Our goal is to help organizations understand what their sites are exposed to in a way that reflects the true physical realities on the ground,” Werner said. This was demonstrated by a video of FM’s flood risk evaluation tool.

AI is only accelerating data’s predictive power.

“AI doesn't replace deep scientific expertise, but builds on it,” Werner explained. “AI helps us to reveal how shifting climate factors shape future behavior and the risk that organizations actually need to prepare for.”

How FM can help: FM’s natural hazard maps identify exposure to risks while our data sheets provide tactical guidance. FM clients can access the Climate Resilience Tracker for location-specific risk insights and prioritized recommendations.

Resilience requires more than insurance

The case for building resilience before losses occur seems clear but risk leaders often face challenges aligning teams, developing plans and securing funding. Having the right partners can help.

“We need to have partnerships with the right people working together, doing the right preparation and taking the actions that actually reduce the exposure to businesses,” said Gritzo.

Strategic risk planning was one of the examples explored as a way to prioritize actions that maximize impact while remaining cost-effective.

“Affordability is such a sticking point that you need to be creative,” Lanzilotto explained, “and the insurance industry can support with alternative coverage models or incentive based structures.”

Insurers can also play a critical role in supporting informed decisions. “We need to help leaders reframe the conversation,” he continued. “What does this mean for our long term resilience? This mindset shift really can uncover smarter decisions and investments.”

How FM can help: FM’s business risk consulting group works with you to understand the financial impact of business disruptions, including those related to extreme weather events.

Watch the full webinar here.