The Federal Emergency Management Agency (FEMA) has released an online mapping application, the National Risk Index (NRI), that identifies communities most at risk for 18 types of natural disasters, including earthquakes, hurricanes, tornadoes, floods, volcanoes and tsunamis. Based on the calculations of 80 experts over six years, the NRI provides a holistic view of community-level risk nationwide and calculates a baseline relative risk measurement.
Many of the risks FEMA calculated highlight familiar, risky locales, such as Los Angeles. However, one interesting calculation shows that New York and Philadelphia, which aren’t usually prone to tornadoes, actually rank far higher for risk. This is because the NRI looks at risk based on expected annual loss, social vulnerability and community resilience. For example, the NRI looks at:
- How often do disasters strike?
- How many people and how much property are in harm’s way?
- How vulnerable is the population socially?
- How well can the area bounce back from a disaster?
High-risk valuations are often garnered by big cities that may be ill-prepared for once-in-a-generation natural disasters. Catastrophes can and do happen, even where not expected. The FEMA NRI application helps broaden the understanding of the risks associated with natural disasters.
It’s smart for businesses to have an actionable emergency plan and recovery plan in place, due to any unforeseen disasters. Businesses should also regularly perform a risk assessment to ensure the necessary coverage is in place to protect their business, employees and clients. Contact Ollis/Akers/Arney Insurance & Business Advisors today to learn more.