How to Reduce Drought Risk
In 2021, a “double-dip” La Niña brought amplified rainfall to Australia, suppressed losses from drought and bushfire in Australia with record rainfall observed across eastern Australia in March and November.
However, Australia is no stranger to drought. The three years from January 2017 to the end of 2019 experienced substantially reduced rainfall, with both 2018 and 2019 especially dry – the devastating impact of these years are not still marked in recent memory. Drought remains a real threat in Australia, not only damaging for the population, farming and livestock, it is also among the costliest perils globally.
Impact on your business
It’s important to come up with a plan to ensure your business can survive a drought. You should find out if they are in a drought prone area, and put measures in place to protect your assets, such as crop insurance and business continuity plans.
What you should do to prepare
For businesses who rely upon the land, preparing for drought is essential and can significantly help in reducing the damage that occurs when drought strikes. The following pointers can begin to help in minimising the damage:
- Check local authority drought planning guidelines and management strategies. Local council and the SES are great places to start.
- Proactively gather rainfall records so you know how much water is coming in.
- Have a business continuity plan in place to allow you to continue to operate during a drought. This will help you to identify risks and to have a plan in place for dealing with them if the time comes, as well as making quick decisions.
- For farms, there are several soil and water-conserving practices that can be put into place such as crop rotation and erosion control structures.
- Finally, understanding that Australia is a very dry and hot country, therefore keeping the possibility of drought front of mind when making financial and business decisions from year to year.
How Aon can help
Aon can help you identify your severe weather risks and come up with a plan to manage and reduce them. We provide a full suite of end to end solutions that can help you before, during and after a weather event.
We can help you:
- Identify risks and reduce the frequency and impact of a loss
- Accurately quantify your risks
- Ensure your tangible assets are valued correctly
- Find the appropriate insurance cover for your property and business interruption
- Devise a business continuity plan to ensure you can get your business running and generating revenue as quickly as possible.
If you or your organisation has been impacted by a severe weather event or natural catastrophe, there are a number of services available to receive appropriate support. We suggest reaching out to the following 24 hour crisis support services:
- Lifeline - 13 11 14
- Suicide Call Back Service - 1300 659 467
- Kids Helpline - 1800 55 1800
- MensLine Australia - 1300 78 99 78
- Beyond Blue - 1300 22 4636