In today’s world, the weather can surprise us any time. Plus, it’s hard to predict the economy. This has every business owner wondering: How can my company get tougher and smarter to face any trouble? The key is to make a solid plan that lowers risks, keeps things running, and helps your business grow again after hard times.
Things can get really expensive when bad weather happens around the world. For example, in 2012, there were over 800 big events that cost about $130 billion. Most of these costs were in the United States. Superstorm Sandy and the long drought in the Midwest are big warnings. They show us the danger of extreme weather events and why business resilience is critical.
Everyone is getting worried about how disasters can hit businesses. When bad weather closes stores, slows down making stuff, or messes up the supplies, it really hurts. Big challenges like this can hit a business’s ability to run and make money hard. So, having a solid resilience strategy is super important. It helps your business face any kind of big problem, from bad weather to pandemics or economic shakes.
Understanding the Impact of Extreme Weather Events
The world is facing the harsh effects of extreme weather events more than ever. A 2012 study showed how these disasters led to about $130 billion in losses globally. Over 800 big events dealt heavy blows to the economy.
In the U.S., Superstorm Sandy and a long, dry spell in the Midwest topped the list of high-cost disasters. In 2017, the U.S. saw a string of weather and climate disasters. Their combined damage hit a record-breaking $306.2 billion, breaking all past records.
Weather-related disasters create many problems for businesses. These include shutdowns, slower production, messed-up supply chains, higher costs, and less customer demand. Many companies aren’t fully prepared for such shocks, even with clear warnings. This often leads to big losses and tough comebacks.
The economic costs of climate change impacts and extreme weather events worry a lot of people. This includes companies, governments, workers, towns, and anyone they sell to. It’s vital for businesses to take active steps in handling these threats. Doing so helps keep their work going strong.
Assessing and Addressing Climate Change Risks
The vast majority of companies know about the dangers of extreme weather and climate change. Many feel these risks soon. However, not knowing the exact nature or timing of these risks stops some from acting.
Yet, some leading companies are acting. They want to be more efficient, save money, or offer better things to customers. This is a smart way to deal with the risks.
Most businesses are doing what they always have. They look at the risks from the past. This is not preparing them for the newer and tougher weather. As a result, they might not survive the future impacts of climate change.
This report talks about what the S&P Global 100 companies are doing. It also has a four-step plan to handle climate risks. This plan uses what the best companies are doing as examples.
Prevailing Attitudes and Practices Among Companies
The study looked at what big companies do about climate change. They were in the S&P Global 100 Index. The report said most of these companies feel the danger of extreme weather and climate change. They know these risks are close, but the details make them hesitant to act more than usual.
Some companies, however, are choosing to face the threats of climate change head-on. They see big chances to save money, do better for clients, or cut waste. For them, it’s smart business. But, most companies are not changing their ways much. They mostly look at old risks and not what’s coming with the changing climate.
This report gives more info on what the big companies think and do about climate change. It talks about their approaches, plans, and reports on dealing with climate risks.
Business Resilience: A Four-Step Framework
A business resilience framework is key in handling climate change and extreme weather. It uses best practices from successful companies. This plan has four main parts to help prepare for severe weather and climate changes:
- Sense: Start by understanding your own climate risk management and operational resilience issues. Do in-depth risk checks and look at past and future climate data carefully.
- Adapt: Then, put in steps to make your work stronger against bad events. This might mean making key places stronger, using more than one supply source, and being better prepared for crises.
- Thrive: Use the plan to not just make it through hard times, but to do well. This can include cutting tech costs, making sourcing simpler, and finding new chances in the market.
- Transform: Keep changing and make your climate risk and business strength better all the time. Idea changes, invest in new ways, and make a culture where you can adapt fast.
This complete business resilience framework helps companies get ready for any problem. It makes them more flexible, ready, and smart, even when things get tough.
Managing Weather and Climate-Related Risks
Businesses are dealing with more and stronger extreme weather events. So, it’s important for them to manage weather risks and fight climate dangers. A second source offers tips on how companies can get ready and handle different extreme weather.
For safety from lightning, the source suggests setting up lightning protection systems. These systems guide lightning to the ground. This helps lower the chances of harm to buildings and tools. When hurricanes hit, it’s critical to shut down processes safely. Also, it’s key to follow special emergency rules. This helps protect buildings and stops dangerous chemical leaks.
The source talks a lot about the dangers from hurricanes. It mentions storm surges, beach erosion, and floods. It says it’s vital for companies to secure stuff like supplies and documents early. Doing this stops or limits harm from hurricanes. It also boosts a company’s ability to keep working even when the weather is rough.
Climate change models show what might happen in the future. Businesses need to think ahead about these changing weather patterns. They should use smart plans for emergencies. This way, they can face future climate changes and keep their businesses safe.
Disaster Preparation and Recovery Strategies
It’s key for businesses to plan well for disasters. This helps them keep running even after big disruptions. Key tips for disaster preparedness and business continuity are:
- Have strong goals for Recovery Point Objective (RPO) and Recovery Time Objective (RTO). This minimizes how much data you lose and how long you’re down.
- Use separate clusters or stretch them out to different places. This is for safety in a disaster recovery (DR) plan.
- Make sure your apps can move easily between your main and backup sites if needed.
- Keep a second OpenShift cluster ready that’s exactly like your main one.
- Backup important parts like container registry and have extras of them, just in case.
To keep your info safe and recover fast, a good backup plan is a must. Check out the Red Hat OpenShift Application Data Protection (OADP) solution. This lets you protect data using the OpenShift system. Also, always test changes somewhere else first to avoid issues with the main system.
When planning for disasters, adding an arbiter zone to your setup is smart. This setup can help prevent data loss by running in more than one place with smooth transitions. It’s good to back up your system daily and use some special software for managing stuff like Git. This keeps your business strong even after a disaster.
Building Business Resilience During COVID-19
The COVID-19 pandemic is a big challenge for all businesses. It has created a tough and unsure economic world. In these hard times, making a business resilience strategy is very important. This helps companies to get through and to do well later on.
Jill J. Johnson, who is both an author and a small business expert, says many are really worried now. This is because lots of small businesses have lost their main source of money for the future. She talks about the need to stay strong and to use smart survival strategies. These strategies can help businesses not only survive but also do better during the tough times that COVID-19 has brought.
Johnson suggests looking at how your money situation stands now. Then, try to save money wherever you can. This might mean talking to your landlords about your rent, cutting back on what you spend, or checking into ways to get help from the government or other places.
She also talks about how important it is to work together with others in your field. This lets you share what works, and it opens up more resources for you. By building a strong community of help and ideas, businesses can become tougher and find ways through the problems that COVID-19 has caused.
What’s most important is to be ready to change, to come up with new ideas, and to stay positive. With a good recovery planning in place, businesses can get ready to do well in the future. They can come out of this hard time even better than before.
Developing a Resilient Mindset
In times of crisis, having a resilient mindset is key for businesses. Jill J. Johnson says this in article three. Business owners should be positive and ready to manage crisis and stress.
Johnson tells business owners to stay hopeful. They should take care of their minds to deal with the tough times. Doing meditation, exercise, and staying mindful helps keep stress away and thinking clearly.
- Think with a resilient mindset. See hard times as chances to learn and grow, not to give up.
- Work with others for help. Talk with friends and experts to see new ways to fix problems.
- Make a workplace that is positive. By being open and supporting each other, everyone feels better and ready to face challenges.
With a resilient mindset, companies can sail through rough times. They will be ready to manage future crises and grow. By focusing on stress coping and taking care of their minds, owners can get through this hard time and be more flexible.
Resilient Businesses Thrive: Lessons Learned
Businesses are learning to be tough, especially during this tough time of COVID-19. A study tells us that 30% of a company’s success in hard times is connected to how well it does. Since the pandemic began, the difference between how well top and bottom businesses do has gotten bigger. About 18 months later, the gap grew from 75 to 105 points.
Some businesses have done really well despite the challenges. Thanks to the crisis, some new winners have appeared. BCG’s report says that 12% of companies became winners after COVID. Especially hard-hit sectors like hotels, resorts, and clothing stores saw 16% new winners.
These winners have found ways to grow during the pandemic. Take Expedia, for example. It made more money than most travel agencies by 2021’s second quarter. Its company Vrbo even did better than Airbnb in adding new places to stay. Kroger also found success by selling more staple and fresh foods.
We can learn a lot from these businesses. They teach us to be prepared and to see the good in tough times. By looking at their stories, other companies can improve. They can learn to stand strong in the future. Then, they can succeed even when things are hard.