Global Assessment Report on Disaster Risk Reduction 2013: From shared risk to shared value - The business case for disaster risk reduction

As the ongoing global economic crisis has put a spotlight on hidden risks in the global economic sys- tem, landmark disasters, such as Hurricane Sandy in 2012 and the East Japan Earthquake and Chao Phraya river floods in Thailand in 2011, may have contributed to a turning point in business aware- ness of disaster risks. Businesses and governments are beginning to recognise a new category of toxic assets as an unfore- seen consequence of economic globalisation. While these toxic assets do not currently appear on their balance sheets, embedding disaster risk management in business processes is increasingly seen as a key to resilience, competitiveness and sustainability: a business survival kit in an increas- ingly unpredictable, complex and fast-changing world. But this change is recent, and there are few blueprints or well-worn paths to follow. In the coming years, as more businesses innovate and gain experience in this area, new paradigms will emerge that in turn will help to redefine the future of disaster risk reduction.