If it seems like natural disasters are getting more frequent and causing greater impact, that’s because they are.
The world experienced an annual average of 335 weather-related disasters between 2005 and 2014, 14 percent more than in the previous decade and almost double the rate in the decade before that. Natural disasters, such as earthquakes and major weather fronts, caused almost $1.4 trillion in damage between 2005 and 2014.
Furthermore, rising global temperatures are forecast to cause higher-intensity storms and wetter Asian monsoons going forward. The Intergovernmental Panel on Climate Change estimates that monsoons will increase by 5-15 percent through the end of the 21st century.
And these disasters are having a big impact on businesses, which rely on global supply chains to secure their inbound materials and outbound product flows. Companies need to stay resilient, no matter what hits.
For many businesses, this reality dawned with the 2011 Tohoku Japanese earthquake and tsunami, followed a few months later by monsoon flooding in Thailand. “That was the turning point in supply chain risk management,” says Mirko Woitzik, Senior Risk Analyst, DHL Resilience360.