Success Stories | Insurance

Comprehensive Multi-Hazard Risk Assessment for A Major Steel Producer in India to Safeguard its Facilities Against Potential Hazard & Climate Risk

Client Overview: A leading industrial conglomerate with multiple plants across diverse geographical locations was concerned about the increasing threats posed by climate change and natural hazards.

Challenge: Recent floods in the region led to large insurance losses and inaccessibility of the plant also led to business interruptions losses along with physical losses for the client. The company wanted to access multi-hazard risks, including floods, earthquakes, and cyclones, to ensure the resilience of its plants. Additionally, wanted RMSI experts to incorporate climate change projections to anticipate future risks accurately and plan mitigation.

Approach by RMSI:

  1. Flood Risk Assessment: Conducted a meticulous survey of plant sites and neighboring catchment areas to assess flood risks analyzing structural assets, topographical features, and hydrological data to understand flood dynamics.
  1. Earthquake Risk Assessment: Utilized advanced modeling techniques to evaluate earthquake risks within a 300 km radius of the plant sites. This included analyzing seismic activity, geological characteristics, and structural vulnerabilities to determine potential impacts.
  1. Climate Change Risk Assessment: Incorporated climate change scenarios outlined by the Intergovernmental Panel on Climate Change (IPCC) to assess the physical risks posed by changing climatic conditions. This involved analyzing temperature trends, precipitation patterns, and sea-level rise projections to anticipate future hazards accurately.
  1. Mitigation and Adaptation Planning: Developed robust mitigation and adaptation strategies to enhance plant resilience against various hazards. This included structural reinforcements, disaster preparedness measures, and land-use planning to minimize vulnerabilities and enhance recovery capabilities.

Outcome: RMSI implemented its comprehensive multi-hazard risk assessment framework to provide valuable insights to the clients into potential risks and vulnerabilities across its plants. The client used these inputs to proactively implement targeted mitigation and adaptation measures.

This proactive approach not only safeguarded assets and operations but also ensured the safety of employees and surrounding communities, underscoring the company’s commitment to sustainable business practices and resilience.

Climate Risk and Impact Assessment for Multiple Airports in India

Client Overview: A prominent player in the aviation sector, wanted to address climate change risks to safeguard its infrastructure and ensure operational resilience. As part of its commitment to sustainable practices, the client sought a comprehensive climate risk assessment for its business.

Challenges: The requirement of the airport operator was regarding the following:

  1. Assess the impact of climate change on its physical infrastructure and airport operations.
  2. Estimate potential business interruptions arising from increased frequency and intensity of climate-related hazards.
  3. Evaluate transitional risks such as technological, policy, legal, reputational, and market risks, and identify opportunities to enhance operational resilience.
  4. Develop a robust risk register and risk impact matrix to prioritize mitigation efforts effectively.
  5. Formulate a climate action plan aligning with TCFD disclosure requirements, incorporating short and long-term adaptation measures and emergency response plans.

Approach by RMSI:

  1. Climate Risk Assessment: Utilized climate change scenarios to assess the vulnerability of physical infrastructure and airport operations to various climate-related hazards, including extreme weather events and sea-level rise.
  2. Business Interruption Estimation: Quantified potential financial losses resulting from disruptions to airport operations caused by climate-related hazards, factoring in increased frequency and intensity of such events.
  3. Transition Risk Assessment: Conducted a comprehensive evaluation of current controls, exposure, and capacity to adapt to transitional risks, including technological advancements, regulatory changes, reputational impacts, and market fluctuations.
  4. Risk Register Development: Developed a detailed risk register and impact matrix to prioritize risks and identify appropriate mitigation measures, ensuring effective risk management across the organization.
  5. Climate Action Plan Formulation: Designed a robust climate action plan incorporating short and long-term adaptation measures to enhance operational resilience. The plan addressed TCFD disclosure requirements, including business continuity plans during extreme events and early-stage emergency response protocols.

Outcomes: By undertaking a comprehensive climate risk and impact assessment, the client gained valuable insights into potential risks and vulnerabilities. The implementation of targeted mitigation measures and the development of a proactive climate action plan positioned the client to effectively manage climate-related risks. This enabled resilience of its operations and contribution to its long-term sustainability goals.