The Business Case for
Disaster Risk Reduction
30 March 2017
The number of disasters is increasing
Disaster occurrence in Asia and the Pacific (Source: EM-DAT)
The cost of disasters is increasing
Economic and human losses in Asia and the Pacific (Source: EM-DAT)
Disaster losses ‘out of control’
‘Economic losses linked
to disasters are ‘out of
control’ and will
continue to escalate
unless disaster risk
management becomes
a core part of business
investment strategies’
- Former UN SecretaryGeneral Ban Ki-moon
Asia Pacific business agrees
Allianz Business Risk Barometer 2017
1. Business interruption, supply chain risk
2. Market developments (volatility & competition)
3. Natural catastrophes
4. Cyber incidents
5. Fire, explosion
6. Macro-economic developments (inflation)
7. Changes in legislation & regulation
8. Loss of reputation & brand value
9. New technology disruption
10. Human error
Ambitious global plan relevant to business
Identified private sector
as a key partner to
achieve a substantial
reduction of disaster
risk and losses
Sendai’s business case for DRR
1.
2.
3.
4.
Protects your business’ assets & operations (BCP works)
Saves you money (disaster resilient investment pays)
Makes you money (DRR is a business opportunity)
Enhances your brand & reputation (DRR as an investment
not a cost)
5. Everyone wins (i.e. value of public-private partnerships
e.g. critical infrastructure)
It protects your business
The day after the 2011 EQ multiple logistics routes
were secured & 400 workers from non-hit areas were
brought in to help
All 10 supermarkets in Tohoku supplied by Seven & I
Holdings Co. Ltd reopened (Ishinomaki reopened the
same day)
Company’s distribution firm revised its contingency
plan seven times since 1995 Kobe EQ
Local store managers had authority to reopen quickly
It saves your business money
NZ utilities company Orion
invested USD6 million in
seismic protection ahead of
Christchurch EQs 2010 &
2011 which saved the
company USD65 million
It makes your business money
Mori Building Japan’s philosophy is ‘build a
city to escape to not from’
It has made a thriving business out of
constructing EQ-safe buildings that
command premium prices
Enhances your brand & reputation
SM Prime’s ‘Mall of Asia’ complex
is built on reclaimed land on Bay of
Manila
30 per cent of the overall project
budget was related to resilience
measures
Since 2006, the site has survived
intact 50 typhoons, 4 EQs & 2
floods from monsoon storms
DRR: Everyone wins
Public-private partnerships to strengthen disaster
resilience work especially with public utilities the ‘lifelines of business’
Christchurch municipality’s long-term culture of
disaster risk management paid off after the 2011
EQ with:
 The rapid reopening of the Port of Littleton;
 Uninterrupted operations from damaged
telecommunications centres
 Most of the city’s bridges remaining in use
http://www.unisdr.org/
Opportunities for Mongolian business
Join a global business partnership that
works to reduce disaster risk:
Through business’ can-do approach to
provide innovative solutions
By influencing education, policy &
regulations
Active national chapters in Japan and
Philippines; due to be established in India
And be visible and active at the Asian
Ministerial Conference on Disaster Risk
Reduction here in Ulaanbaatar July 2018
I
Thank you