How to go beyond traditional climate risk management to tackle amplified exposures more effectively

October 2024 saw the deaths of hundreds after catastrophic floods – reported to be most deadly deluge in a single country in Europe in more than 50 years – hit Eastern Spain, including Valencia. Survivors faced devastation to homes, livelihoods and infrastructure following slow and disorganized disaster planning and emergency responses by authorities, prompting protests by beleaguered communities.

Engineering experts have argued better use of natural catastrophe (natcat) and climate risk modeling before disaster struck would have helped mitigate the risks. We argue going beyond traditional stand-alone natcat and climate risk modeling is only one way of reframing climate risk management to better navigate what can feel like unchartered climate risk territory. In this article, we look at five ways you can go beyond traditional climate risk management boundaries to deal with the increasing volatility of acute (for example, flood and wind) and chronic (for example, heat and drought) climate risks and their amplifying impacts, specifically:

1. Going beyond traditional modeling to identify compounding climate impacts
2. Going beyond traditional organizational boundaries between treasury, risk and sustainability 
3. Going beyond traditional insurance approaches to look at alternative climate risk transfer
4. Going beyond traditional organizational boundaries to widen your climate risk management view
5. Going beyond today’s climate disclosure and metrics

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