Risk Management for Hurricane Season

Risk Management for Hurricane Season

Is your organization thinking about risk management for hurricane season? According to an article by Risk Management Magazine, the 2024 hurricane season, which started June 1, is predicted to be exceptionally active, with experts forecasting above-average storm activity due to record-high ocean temperatures and an expected shift from El Niño to La Niña conditions. 

Colorado State University predicts 23 named storms, 11 hurricanes, and five major hurricanes, with a high confidence level. Similarly, NOAA forecasts 17 to 25 named storms, with 85% confidence, and anticipates eight to 13 hurricanes and four to seven major hurricanes.

Two key factors contribute to this outlook. Firstly, the North Atlantic Ocean has experienced 14 months of record-high surface temperatures, enhancing hurricane formation and intensity. Secondly, the shift to La Niña is expected to reduce wind shear, facilitating storm development.

Meteorologists also predict a higher impact season in terms of landfall, with major hurricanes expected to hit the continental U.S. and the Caribbean. The 2023 season, although seemingly tame, saw 20 named storms and set records for storm formation, indicating a trend towards more frequent and intense hurricanes.

Given this forecast, the article suggests that organizations must bolster their disaster preparedness and response plans. Allianz recommends updating emergency preparedness plans, testing business continuity plans annually, understanding insurance policies, preparing for specific storm types, and improving building resilience. These steps include ensuring comprehensive emergency response plans, securing appropriate insurance coverage, and implementing structural enhancements like emergency generators, floodgates, and impact-resistant building materials.

Risk managers should act promptly to strengthen their measures before the peak hurricane period, which historically occurs from August through October, to mitigate potential damages and ensure swift recovery from extreme weather events.