As a region vulnerable to natural disasters, Asian businesses must take a close look at their risk management practices, according to the chairman of the Pan-Asia Risk & Insurance Management Association.
Frank Baron, also a Singapore-based risk manager, pointed out that 40% of hard drive disks are produced in Thailand, and the region is also home to several highly-concentrated outsourcing locations, all of which could be majorly disrupted in the event of a natural catastrophes. That includes the effects of rising sea levels caused by climate change, which affects 183 million people.
This call for effective risk management comes at the same time the United Nations has identified critical gaps in early warning systems for remote communities in the event of a tsunami.
“Reaching the most vulnerable people and remote communities at the ‘last mile’ with timely warnings is critical,” said Shamika Sirimanne, Director of Information, Communications Technology, and Disaster Risk Reduction Division for the U.N.’s Economic and Social Commission for Asia and the Pacific. “An efficient end-to-end system is yet to be realized.”