With shifting climate conditions, one natural disaster after another, and an already complex incident management landscape, risk managers may struggle to accurately assess the risks they face. But with geospatial analytics software, you can use geographical information to assess, predict, and mitigate risks. In a constantly changing risk management environment, this technology gives you the agility you need to make reliable, data-informed decisions.
Identifying and Assessing Risk
With geospatial software, you can use interactive maps to figure out which risks you’re most susceptible to and how to account for them in your mitigation strategy. As the cost of insurance premiums fluctuates, you can use this technology to more accurately ascertain the coverage you need.
For instance, in the wake of an active hurricane season in the Southern Coastal states, insurance premiums may go up for plans that include weather-related coverage. You can use geospatial analytics to get an idea of:
- The number of storms that have impacted specific areas
- The severity of each incident
- The amount of damage in dollars each weather issue caused
With this information in hand, you can decide whether you need to maintain your current coverage, increase it, or reduce it. By putting geospatial data to work, you can optimize your insurance spending, perhaps freeing up money for other business goals.
Planning an Emergency Response System
The costs associated with designing and implementing an effective emergency response system are constantly in flux. But the expense is often well worth it, especially when your internal emergency response systems can save your company money or boost operational uptime.
With analytics, you can design an internal emergency response system that reduces the need to use expensive external solutions.
For instance, If your analysis reveals a high average number of winter storms in your area, you can purchase snow and ice removal equipment. Over a few years, this investment may pay for itself because you can handle each storm using in-house staff.
Assessing Environmental Risk
When you use analytics to assess the risk posed by the environment, you can significantly limit future losses, particularly by predicting which ones are most likely to impact your business.
For example, suppose you have a real estate development company that operates in an area adjacent to one that’s prone to wildfires. Here are two ways you can use analytics using historical wildfire data:
- Assess the likelihood of a wildfire impacting an area you’re considering investing in. If the chances are high, you can use that data to estimate your insurance costs and then decide whether or not developing there is worth the risk.
- Find deals in areas where people think wildfires may hit but have always been historically safe. For instance, many parts of northern California have been spared from wildfires. But because they’ve hit a couple hundred miles away, there may be good deals on properties, simply based on fear.
Regardless of how you use environmental data, by putting analytics to work, you can predict what may be around the corner and then allocate your funds accordingly.
Use Real-Time Weather Data to Limit Losses
With the right geospatial analytics solution, you can get real-time weather information, making it easier to predict what may impact your business and how to reduce potential losses.
For example, during a renovation, remodel, addition, or other construction project, you may have to factor in the risk of losses due to weather, related delays, and lack of productivity. Many contractors charge by the number of days worked, adding extra charges if the project goes overtime.
With geospatial software, you can see the weather events that are headed your way. If there’s a high chance of rain, instead of having your contractors bring their workers to the job site, you can tell them to take a day off. As a result, you can save considerable money over the lifecycle of a project, keeping your numbers within budget.
Prevent Significant Losses Using Weather Data
Geospatial analytics can also be a powerful loss mitigation tool if you have equipment or people who may get exposed to extreme events. For example, you may have salespeople who have to travel to in-person conferences or meetings. Using analytics, you can gather weather data about where they have to travel. If the risk of an extreme event is high, you can advise them to cancel or reschedule.
Also, if you have machinery, facilities, or other equipment that could be impacted by extreme weather, you can get them ready for an event. This could involve installing hurricane shutters or boarding up windows, preparing trucks and other equipment for below-freezing conditions, or getting flood mitigation equipment ready for after heavy rain.
Ventiv Geospatial gives you a plethora of data you can use to predict and reduce your total cost of risk. You can also use it to keep human and capital resources safe, as well as prevent extensive losses from events. Chat with an expert to see how Ventiv’s Geospatial Solution is right for your organization.
