Such perils frequently occur as a consequence of other weather phenomena, or develop from seemingly harmless conditions, and still require mitigation.

Extreme weather events such as floods, hail, or wildfires — collectively known as “secondary perils” — are on the rise across the globe. Hail, storms, landslides or wildfires are also classified as secondary perils.

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, because these secondary perils frequently occur as a consequence of other weather phenomena, or develop from seemingly harmless conditions.

If underestimated, secondary perils can result in significant property damage and major business interruptions. For example, a local heavy rainfall event following an extended dry spell can lead to sudden flooding.

What many firms overlook is that secondary perils tend to occur more frequently in certain regions, yet remain difficult to predict. However, 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.

Managing secondary-risk underestimation
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 site 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 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, organizations can obtain a strong basis for informed decision‐making.
  2. Identify and prioritise vulnerabilities
    Once all hazard exposures are identified, the next step is to ask: Which areas of all sites 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. Structured prioritization helps to identify and safeguard essential assets. Regular reviews ensure that protective measures remain fit for purpose, as production facilities, processes and site conditions often change over time.
  3. Prevention: Implement risk mitigation measures effectively
    Insight alone is not enough: it must be translated into effective actions categorized into  organizational, structural, and technical. These may include drainage systems, backflow protection, or mobile flood defenses. 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, can provides organizations with support on both data collection and the interpretation of analysis results, as well as developing concrete recommendations for action. Other benefits include tailored advice and a long term partnerships. This can also include strategic support, such as assistance with investment decisions or the selection of new sites.
  5. Stay updated on digital solutions and climate mandates
    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. Continual digitalization offers new possibilities for early risk detection and positions businesses securely for the future.

With systematic risk management, targeted risk mitigation measures, and support from experienced partners, organizations can significantly reduce losses and downtime ARGOS 4.0 in climate incidents.

Digital tools and regular risk management reviews ensure that firms remain ready to act — even in the face of extreme weather events.