Some useful advice on secondary perils and risks, from HDI Global;
Extreme weather events such as floods, hail, or wildfires – collectively known as ‘secondary perils’ – are on the rise across the globe. Many companies underestimate these risks, yet they can result in significant property damage and major business interruptions.
Wiebke Cundill, Team Lead for Natural Hazards and Climate Risks Analysis at HDI Global, explains how companies can identify vulnerabilities, protect their sites effectively, and remain resilient in the long term with the help of strong partners and digital tools.
Unlike major natural hazards such as earthquakes or hurricanes, secondary perils are often perceived as less severe. Nevertheless, they pose a significant danger to businesses. These events frequently occur as a consequence of other weather phenomena or develop from seemingly harmless conditions. For example, a local heavy rainfall event following an extended dry spell can lead to sudden flooding. Hail, storms, landslides or wildfires are also classified as secondary perils.
What many companies overlook is that secondary perils tend to occur more frequently in certain regions, yet remain difficult to predict. This poses a frequently underestimated risk for production facilities and critical infrastructure, such as energy supply, logistics, or sensitive electronics. Utility lines, IT infrastructure, and supply chains are particularly vulnerable and are often neglected in operational risk analyses. The following five measures can help companies specifically address secondary perils and bolster their resilience.
1. Risk Analysis: Assess Each Site Individually
Every site is unique. One may have an increased exposure to flooding due to its proximity to a river, while another may face a landslide risk owing to its hillside location. A bespoke analysis of local hazards is therefore essential. Modern digital tools such as ARGOS 4.0 or EarthScan make it possible to quickly conduct data-driven initial assessments of natural hazards and climate risks, drawing on historical weather data, climate models, water levels, and so forth, and providing five-year projections for various climate scenarios up to the year 2100. As a result, companies obtain a strong basis for informed decision‐making.
2. Identify and Prioritise Vulnerabilities
Once hazard exposures are identified, the next step is to ask: which areas of my site are particularly sensitive? Basements, IT rooms, production lines and storage of valuable raw materials are often among them. Connections to energy providers and suppliers are also critical. A structured prioritisation helps to identify and safeguard essential assets. Regular reviews ensure that protective measures remain fit for purpose, as production facilities, processes and site conditions can often change over time.
3. Prevention: Implement Risk Mitigation Measures Effectively
Insight alone is not enough – it must be translated into effective actions: organisational, structural, and technical. These may include drainage systems, backflow protection, or mobile flood defences. Adherence to current building standards is as indispensable as comprehensive emergency and evacuation plans. Early investment in risk mitigation can save significant costs and avoid operational downtime when an incident occurs.
4. Rely on Strong Partnerships
Risk analysis and mitigation are complex tasks. Collaboration with experienced partners, such as the risk engineers at HDI Risk Consulting, provides businesses with support on both data collection and the interpretation of analysis results, as well as developing concrete recommendations for action. Clients benefit from tailored advice and a long-term partnership. This can also include strategic support, such as assistance with investment decisions or the selection of new sites.
5. Stay Up to Date with Digital Solutions and Regular Reviews
Today’s climate risks are not the same as tomorrow’s. Dynamic risk management is therefore crucial. Digital tools facilitate continuous monitoring of site-specific hazards using historical data and future projections. Regular updates and adaptations of risk mitigation measures ensure that companies are not caught off guard by new developments. Digitalisation offers new possibilities for early risk detection and positions businesses securely for the future.
Resilience Can Be Planned
Those who underestimate secondary perils put valuable assets and business operations at risk. With systematic risk management, targeted risk mitigation measures, and support from experienced partners, losses and downtime can be significantly reduced. Digital tools and regular reviews ensure that companies remain ready to act – even in the face of extreme weather events – and are able to safeguard their future.
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