Private Sector Engagement in Disaster Risk Reduction. The Strengthening of Businesses Disaster Resilience

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1 Private Sector Engagement in Disaster Risk Reduction The Strengthening of Businesses Disaster Resilience

2 APEC economies 49% of world s trade 55% of world s GDP 70% of world s natural disasters

3 NatCatSERVICE NatCatSERVICE Natural Catastrophes 2012 Loss events worldwide 2013 World map Geographical overview Winter Storm Andrea Europe, 5 6 January Winter Storm Christian (St. Jude) Floods Meteorite impact Cold wave Geophysical events Flash floods Europe, October Floods Europe, Russian Federation, Eastern Europe, Jan Feb (Earthquake, tsunami, United Kingdom, 30 May 19 June Canada, 8 9 July 15 February Cold wave volcanic eruption) November Floods Severe storms Earthquake Afghanistan, Jan March USA, April Severe storms Flash floods China, 20 April Floods Canada, June Meteorological events USA, 28 June 2 July Russia, 6 8 July China, July Hailstorms, severe storms (Tropical storm, Canada, August extratropical storm, convective storm, Drought Hurricane Sandy USA, summer USA, Caribbean local storm) Hailstorms October Typhoon Haikui Earthquakes Hurricane Germany, Isaac China, Severe storms, Italy, USA, 28Caribbean July Typhoon Fitow Hydrological events 8 9 August Floods tornadoes 20/29 May August Earthquake China, Japan, (Flood, mass movement) USA, 9 16 September USA, 2 4 March Severe storms, Iran, 11 August 5 9 October tornadoes Typhoon Bopha Climatological Philippines, events USA, May Earthquake Floods Typhoon Haiyan (Extreme temperature, 4 5 December Mexico, 20 March Floods Pakistan, Philippines, 3 27 September drought, wildfire) Severe storms, tornadoes Nigeria, July Oct USA, May Floods 8 12 November Extraterrestrial events Columbia, March June Floods (Meteorite impact) Hurricanes Ingrid & Floods, flash floods India, June Floods Australia, Jan Feb Manuel Australia, Floods, hailstorms Number of events: Mexico, September South Africa, October January Floods, flash floods Australia, Feb March 880 Earthquake (series) Loss events Loss events Pakistan, September Natural catastrophes Geophysical events Heat wave Hydrological events Selection of (earthquake, tsunami, India, volcanic April June activity) (flood, mass movement) catastrophes Source: Munich Re, NatCatSERVICE, 2014 Selection of significant Meteorological events Climatological events Natural catastrophes (storm) (extreme temperature, drought, wildfire) 2014 Münchener Rückversicherungs-Gesellscha ft, Geo Risks Research As at January Münchener Rückversicherungs-Gesellschaft, Geo Risks Research, NatCatSERVICE As at January 2013

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5 Who pays for disaster losses?

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7 Scenario 1: Unprecedented Flooding in Thailand million people from 66 Province affected 680 lives lost Approximately 11.2 million rai (18,000 km2) of farmland remained under water (Dec2011) Damage and Losses worth $46.3 billion and rehabilitation and reconstruction needs $50 billion (PDNA report) World's 4th costliest disaster (World Bank)

8 Impact of Thailand floods on different OEMs and estimated production loss

9 Percentage change (% y-o-y) Scenario 2: Globalized supply chains Auto production after Japanese earthquake JAPAN THAILAND PHILIPPINES INDONESIA March-11 April to June-11 Automobile production after the March 2011 Japanese earthquake and tsunami disaster

10 Scenario 2: Globalized supply chains Hard disk drive prices tripled during the 2011 Thai floods Source: Camelegg. newegg.com Price Tracker

11 Singapore o Singapore Standard ISO22301 o National BCM Programme o BCM Awards and Ambassadors Republic of Korea o Act on Government s Helping Businesses to Voluntarily Set Up BCP o BCP Outstanding Companies Japan o Guidelines on Formulating and Implementing BCPs for SMEs o Free BCP Trainings and Workshops by government agencies Australia New Zealand o o Queensland Shake Out : Campaign The Key to National Business Earthquake Resilience Preparedness Resource Exercise Book o o Victoria Get Ready : Restore Get Thru Your Resources Business for small Community businesses - Checklist

12 Thailand: Private Sector Resilience

13 Thailand: Private Sector Resilience Adopt strategies and strengthen implementation of regulations in building Business resilience Promote business continuity planning and incentivise business continuity management. Increase collaboration for building capacities of private and public entities in dealing with emergency situations Educate and create awareness on the necessity and benefits of disaster risk reduction and building resilience

14 Thailand: Private Sector Resilience Establishment of a governing body as per sector Establishment of budget for awareness raising and capacity Establishment of BCP Resource Center Publication of BCP Guidelines or Manuals Awareness raising campaigns (seminar, study tour) Capacity-Building Programmes Formation of Public-Private Partnership Critical Medium Low Not necessary Investment in BCP Pilot Programme Corporate tax deduction/ exemption for companies who

15 Thailand: Private Sector Resilience Consultation on Private Sector Engagement in DRR

16 Thailand: Private Sector Resilience Training package and practical guidelines on promoting BCP

17 Thailand: Private Sector Resilience Traininig : Business Continuity Management Systems ISO22301

18 Thailand: Private Sector Resilience BCP Workshops for SME

19 Thailand: Private Sector Resilience Lessons Learnt and Way Ahead

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