Record Heatwaves: Protecting Employee Health and Safety
With the continued threat of rising temperatures, companies should focus on building climate and weather-related impacts into their overall workforce resilience plans.
Key Takeaways
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Record heatwaves will soon represent a new normal.
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Heat is a health and safety risk — employers should treat it like any other serious risk to mental and physical health.
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HR leaders must take steps to learn who is most at risk, and help employees adapt or mitigate the risk.
Summer in the Northern Hemisphere has once again brought record heatwaves in 2023. Globally, the hottest day, week and month ever recorded all occurred in July of this year1. And extreme heat events, both in temperature and duration, are only expected to become more common.2
Heatwaves are certainly not a new phenomenon. The hottest summer in Europe in over 400 years occurred in 2003. However, that record has since been surpassed at least six times since. From mental wellness and the physical health threats associated with extreme heat, to a rise in atmospheric pollutants and resulting challenges, the people-related risks associated with today’s changing climate are undeniable.
The Risk to Employees
A warming climate is a threat to workforce resilience. People are adjusting how they live and operate in a warmer planet — and the full extent of how extreme heat affects health is still being studied. The human health impacts of extreme heat span all areas of wellbeing. Specifically, recent research reveals the effect of heat on mental health.3 One 2022 study4 found that emergency room visits for mental illnesses were much higher during the hottest days of summer compared with the coolest days in the same season. Additionally, heat is associated with a spike in violent crime.5
Beyond mental illness, extreme heat poses a range of physical health risks as well.6,7 In fact, there’s been more awareness and research on how heat affects people with preexisting health conditions such as diabetes8.
Like other extreme weather events, heatwaves expose income and racial disparities. For example, a 2021 study9 in the science journal Nature, found people of color were exposed to more extreme urban heat in almost every major U.S. city. In the United States, individuals without health insurance or those who are functionally uninsured (meaning they can’t afford to cover basic out-of-pocket costs like deductibles, copays and coinsurance), are particularly vulnerable to heat-related illnesses. Heatwaves also contribute to the development of atmospheric pollutants such as ozone and particulate matter, which can have adverse impacts on respiratory and cardiovascular health. Increased risk of infectious disease, like Lyme disease and West Nile virus,10 as well as the proliferation of heat-loving bacteria can also lead to infections and increased risk of a future pandemic. Additionally, heatwaves increase the risk for wildfires — yet another factor driving atmospheric particulate matter. Still more respiratory risks come from an increased demand for electricity to power air conditioning. This causes potential outages, which can exacerbate heat-related problems while creating new ones — for example, a lack of power for sanitation systems or medical devices.
Addressing the Risk to Employers
Employers have a responsibility to their employees and their business operations to ensure the health and safety of their workforce. Beyond this, extreme heat can also cause productivity issues and business interruption. It’s recommended to treat heatwaves similarly to other public health risks like outbreaks of disease.
Employers should consider building climate and weather-related impacts into their overall workforce resilience plans. This includes:
- Flexible working to limit outdoor work during unsafe conditions.
- In the U.S., the National Institute for Occupational Safety and Health (NIOSH) recommends that employers implement measures to protect the health of workers exposed to heat and hot environments.11
- The European Agency for Safety and Health at Work has published similar guidelines, based on NIOSH standards as well as those from the UK, Australia and Canada.
- The availability of adequate shade, water and regular resting breaks. Workplace safety regulations related to heat are evolving to provide more protection.
- Contingency plans for locations not traditionally considered prone to certain natural disasters, but which are now susceptible.
- Loosened location requirements for remote workers if they don’t have access to air conditioning and need to go to a public space.
- The acknowledgement that employees in lower income areas may be more susceptible (e.g., longer waits in the heat for public transportation, less reliable electricity infrastructure) and less able to adapt to the effects of extreme heat. For example, turning on the air conditioning means a higher energy bill, which some employees may not be able to afford.
- An adjustment plan for new and returning workers. A lack of acclimatization has proven to be a major factor associated with worker heat-related illness and death.12
Employers should also ensure healthcare access for vulnerable populations. Many heatwave- related illnesses like heat stroke are acute, so the availability of adequate and immediate medical care is important. Employers should establish a monitoring program for early identification of signs that may be related to heat-related illness. This program should include a plan for monitoring workers on the job. Using data and analytics, employers can identify which employees are most vulnerable based on factors such as pre-existing conditions and location. They can then take extra action to ensure these people are protected.
Employee benefits are another way companies can better support employee health, safety and wellbeing. Offerings could range from financing to access efficient heating and cooling systems like heat pumps, to financing for energy costs themselves, especially if workers are hybrid and working from home.
Employers can also have a significant impact on the communities in which they operate. Positive investments in activities like regreening urban communities can not only help combat extreme heat and urban heat islands, but it can also help bring employees and community members together.
Global Climate Issues Warrant Global Solutions
While policies around medical care and heat-related illness are vital, employers and employees in areas not traditionally affected by heat could take a lesson or two from other parts of the world, where extreme heat is common. Some workers in India, South America and other regions, for example, work a split shift, with much of the workday taking place before the sun rises and later in the evening when it cools14. Other adaptations can include developing indoor spaces to take advantage of air flow, wearing light-colored, loose-fitting clothing (rather than wearing less), and keeping a damp cloth covering the neck — an important spot for temperature regulation in the body.
17˚C
July 3-9 2023 was the first 7 day period ever to have a global average daily surface temperature exceeding 17˚C (62.6˚F)
Source: Copernicus Climate Change Service ERA5 data
Companies need to adapt and reduce greenhouse gas emissions through sustainable transitions of their business models. They also need to create adaptation plans across locations — especially places that haven’t historically dealt with heatwaves.
A Warming Climate Demands Better Decisions
There are many impacts a changing climate will have on organizations and their workforce resilience — from understanding and mitigating risks to business operations and addressing the health, safety and wellbeing of their people. A principal point to remember is that human activity, especially through the use of fossil fuels, is driving the accumulation of heat-trapping emissions in the atmosphere. This then accelerates climate change, leading to more intense and longer heatwaves. Organizations should not dismiss this truth and continue accelerating their shift away from fossil fuels. Every degree of warming counts, and every action taken now will have an impact on the future and the ability for humans to thrive.
Companies can partner with trusted advisors to address these risks and develop strategies to ensure employees and their families have access to health and benefit coverage that properly protects them from climate-related impacts and illnesses. In the process, they will also adapt and become more resilient to a changing climate that is less predictable. Aon’s risk tools, analytics and modeling capabilities identify where potential risks lie and help organizations anticipate and mitigate the worst impacts of climate on their operations and workforces.
Prepare for the future by shifting the paradigm from reactive to proactive. Indeed, it is this shift that will enable broad adaptation, resilience building and mitigation of climate change for a brighter, more livable future.
1 July 2023: Global air and ocean temperatures reach new record highs
2 Record-breaking heatwave will be an average summer by 2035, latest Met Office Hadley Centre data shows
3 Climate Change 2023 Synthesis Report
4 Association Between Ambient Heat and Risk of Emergency Department Visits for Mental Health Among US Adults, 2010 to 2019 | Psychiatry and Behavioral Health | JAMA Psychiatry | JAMA Network
5 Interpersonal violence associated with hot weather - The Lancet Planetary Health
6 Extreme Heat and Your Body: What Happens When It Gets Too Hot? - The New York Times (nytimes.com)
7 Climate Change 2023 Synthesis Report
8 People with diabetes are among those most vulnerable to heat waves. : NPR
9 Disproportionate exposure to urban heat island intensity across major US cities | Nature Communications
10 https://www.cdc.gov/ncezid/what-we-do/climate-change-and-infectious-diseases/index.html
11 https://www.cdc.gov/niosh/docs/2016-106/pdfs/2016-106.pdf?id=10.26616/NIOSHPUB2016106
12 Disproportionate exposure to urban heat island intensity across major US cities | Nature Communications
13 https://www.nytimes.com/2023/08/17/well/live/heat-hydration-advice.html
General Disclaimer
This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.
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How pay and benefits are managed in M&A transactions creates a lasting impression on employees. Mismanagement can lead to disengagement and attrition, eroding deal value. But the challenge of integrating employee benefits can also bring opportunities to improve business outcomes.
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Article 5 mins
Under Pressure: How Tax Insurance Supports Certainty in Cross-Border M&A
In a rapidly evolving tax environment, tax insurance is more than a safeguard — it’s strategic risk capital that unlocks value and accelerates deal confidence.
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Article 5 mins
Rethinking Cyber Risk Capital in APAC: Closing Insurance Gaps
Despite unprecedented investment in digital transformation across Asia Pacific, there is a disconnect between cyber risk and capital allocation. Organizations are racing to innovate, yet the adoption of cyber risk capital trails behind the velocity of cyber threats.
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Article 8 mins
The Role of D&O Insurance in Securities Class Actions: From Triggering Events to Claims Resolution
For public companies and their executives, facing a Securities Class Action (SCA) can be an overwhelming and unprecedented time. While the stakes are high, the procedural roadmap of an SCA typically follows a consistent trajectory.
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Article 12 mins
Driving Value Through M&A in FAB: Strategic Acquisition and Spin-Out Opportunities
Strategic acquisitions and divestitures are essential for survival and growth in the FAB industry, but increasing risks demand a reevaluation of traditional dealmaking tactics.
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Article 12 mins
Relevance Through the Market Cycle: 5 Strategic Imperatives for Insurers to Drive Performance
Relevance is not a phase — it’s a discipline. In a market defined by volatility, insurers must embed strategic relevance into every decision to outperform through the cycle.
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Article 9 mins
Building Climate Resilience in Global Food, Agribusiness & Beverage
Climate change is now a central disruptor for FAB industries worldwide, impacting every tier, from raw production to global supply chains. Extreme weather, shifting rainfall patterns and regulatory changes are altering the landscape for every organization within the value chain.
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Article 6 mins
Delivering Critical Cargo: Why Stock Throughput Insurance Matters to Life Sciences Leaders
Patient access to critical life sciences products is at risk when supply chains are disrupted. In a dynamic risk landscape, organizations are leveraging stock throughput insurance along with advanced risk strategies to ensure continuity, compliance and reputation.
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Article 5 mins
Bridging the NIS2 Cyber Security Gap
Organizations must prioritize addressing critical cyber security vulnerabilities to comply with the EU’s NIS2 Directive and help bolster their resilience against cyber threats.
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Article 7 mins
Why Pay Transparency Demands a Total Rewards Lens
Pay transparency is more than another regulatory mandate. It’s a foundational shift in how leading organizations are building resilient cultures and future-ready workforces — especially as scrutiny extends beyond base pay.
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Article 22 mins
4 Strategies to Navigate Insurance Claims Trends
Dynamic trends are influencing the size and complexity of claims around the world. Proactive claims management can help organizations recover swiftly after a loss event and manage potential claims exposures.
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Article 6 mins
Optimizing Your Property Program: How to Use a Soft Market to Build Resilience
While the global property insurance market currently favors buyers, it is uncertain how long this will last. Businesses should act now by adopting a proactive, data-driven property risk strategy that aligns financial stability and risk appetite with market dynamics.
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Article 7 mins
Navigating the Regulatory and Investment Landscape for Non-Profits
Non-profit organizations in the U.S., Canada and the UK in particular, face unprecedented regulatory scrutiny and financial instability. Here are ways to strengthen investment strategies at a critical time using an OCIO model.
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Article 10 mins
Unlock the Potential of Alternative Investments with an Outsourced Chief Investment Officer
Avoid limiting a portfolio’s capacity based on the capabilities or bandwidth of an existing process by working with the right partner.
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Article 10 mins
How Captive Insurance Supports the Energy Transition
The rapid growth of renewables demands innovative risk solutions. Captive insurance offers a strategic, flexible approach to managing evolving risks — helping energy leaders navigate volatility, optimize capital and unlock new opportunities in the transition to sustainable power.
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Article 8 mins
An Insurer Roadmap for Navigating the Energy Transition
The energy landscape is rapidly changing, presenting the re/insurance industry a unique opportunity to facilitate the transition to a sustainable economic model.
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Article 11 mins
De-Risking M&A in Financial Institutions: Strategies for Smarter Deals in Uncertain Markets
Against a backdrop of unsettled global markets, financial institutions can still capitalize on M&A opportunities by refining strategies and retaining focus on long-term ambitions.
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Article 9 mins
Unlocking Mass Timber: Strategies for Risk and Insurance
Mass timber construction is gaining traction for its sustainability and efficiency, yet it brings distinct insurance and risk management challenges that require industry collaboration and proactive strategies.
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Article 12 mins
Total Rewards Strategies That Drive Business Outcomes
As business demands grow more complex, employers must offer a total rewards package that balances the varied needs of the workforce with financial sustainability. Explore ways to ensure an effective total rewards program with data and timely communications.
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Article 6 mins
Building Resilience for Another Active Atlantic Hurricane Season
Forecasters predict another above-average North Atlantic hurricane season. Businesses should use their saved premium dollars to strengthen their hurricane-prone properties and workforce, and treat risk management as a strategic asset.
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Article 9 mins
How Risk Capital can Enhance Cargo Risk Management Amid Global Trade Challenges
The global marine cargo market faces many risks, ranging from shipping delays to geopolitical tensions. These challenges can be mitigated through a risk capital approach, which uses strategic capital allocation and data-driven insights.
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Article 8 mins
Securing the Load: Strategies to Manage Complex Project Cargo Risks in the Construction Industry
Ensuring the safe delivery of construction materials along shifting trade channels is no simple endeavor. Learn how specialized insurance and risk management can support the transportation of construction cargo and help ensure project success.
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Article 9 mins
Risk Capital Solutions in Life Sciences: How to Find Cost Efficiencies and Manage Volatility
Industry shifts and innovations are creating both new opportunities and challenges for life sciences organizations. Optimizing risk capital can enable business leaders to uncover cost efficiencies, strengthen resilience and enhance control.
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Article 13 mins
Navigating Cargo Transportation Challenges in the Food, Agribusiness and Beverage Industry
The FAB industry faces significant supply chain challenges requiring innovative solutions and strategic planning. As organizations work to optimize capital and manage costs, they must also address geopolitical risks and regulatory updates.
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Article 11 mins
Directors & Officers in the Digital Age: Managing New Technological Risks Across APAC
With rapid technological advancements, directors and officers face increasing liabilities. Proactive risk management and board oversight can ensure organizational resilience.
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Article 10 mins
5 Ways to Position Risk Capital as a Value Driver
In today's uncertain economic climate, finance leaders must innovate beyond traditional financial metrics, managing risk capital through targeted risk strategies, holistic capital approaches and proactive stances toward emerging threats.
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Article 6 mins
Taking a Data-Led Approach to Job Architecture to Accelerate Pay Transparency
With looming deadlines on pay transparency regulations, establishing an effective job architecture is foundational to compliance and preparation. We explore how a data-led approach can speed the process while maintaining objectivity.
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Report 13 mins
Trade Issues Confront Global Businesses on Multiple Fronts
Global business leaders highlight risks linked to trade as some of their top concerns — both physical and financial. While the topic is complex and broad, there are opportunities that business leaders can pursue to stay ahead of emerging trade dynamics.
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Article 5 mins
Parametric: A Complement to Traditional Property Coverage
As property underwriters become increasingly concerned and cautious with catastrophe-prone risks, buyers are turning to alternative property solutions, including parametric, to fill protection gaps in their programs.
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Article 6 mins
3 Rules to Help Elevate Your Business Continuity Strategy
Half of the world’s top economic loss events impacted the U.S. in 2024. As natural catastrophes continue to grow in frequency and severity, enhancing a business continuity strategy helps ensure organizations are prepared for the unexpected.
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Article 12 mins
A Targeted Strategy to Mitigate Rising U.S. Health Costs
While medical and pharmacy expenses continue to consume benefit budgets, employers can adopt effective cost-saving strategies that combine predictive analytics with innovative solutions to help control healthcare spend over a multi-year period.
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Article 8 mins
Using Climate Data to Protect Employee Health
Employers are increasingly looking to defend the health and safety of their employees in a changing climate. By modeling the impact of weather on employees like they do for physical risks, employers can proactively establish solutions to protect workers.
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Article 7 mins
Why Organizations Need a Robust Directors and Officers Risk Program
A variety of growing risks, including shareholder derivative actions, an evolving regulatory environment and bankruptcy filings, are why public and private organizations must protect their corporate directors and officers.
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Article 15 mins
Navigating Cyber Risks in EMEA: Key Insights for 2025
Organizations in EMEA face unprecedented challenges as cyber threats become more sophisticated. In the face of emerging AI, evolving regulations and geopolitical tensions, businesses should strengthen their resilience to better navigate the complexities of the digital age.
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Article 6 mins
Outsourced Chief Investment Officer: The Key to Navigating Volatility
In a volatile climate, institutional investors are turning to outsourced chief investment officers to conquer administrative, regulatory and market challenges.
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Article 6 mins
Understanding the Financial Landscape of Wind Energy
Investment in both onshore and offshore wind power is key to not only energy security, but also wider social and economic benefits through the creation of jobs and investments in local communities around the world.
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Article 8 mins
The CFO Roadmap: Expanding Success Beyond Financial Metrics
In today's intricate business environment, growth is expanding to include more than financial success. By understanding how to fund, shape and secure growth, organizations can build resilience and drive long-term value.
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Article 6 mins
AI Innovations in Renewable Energy: Transforming the Sector
AI in the renewable energy sector is revolutionizing how we produce, manage and consume energy. As AI continues to evolve, industry leaders must find innovative ways to harness its full potential.
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Article 8 mins
Cyber and E&O Market Conditions Remain Favorable Amid Emerging Global Risks
Despite higher claims frequency, the cyber and tech E&O markets remain in a favorable pricing and well-capitalized environment. However, buyers must remain vigilant and manage a variety of current and emerging cyber risks and threat actor attack methods.
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Article 4 mins
5 Steps for Successful Carbon Accounting Verification
Organizations can demonstrate their commitment to global sustainability and a low-carbon future by addressing verification challenges and adopting best practices.
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Article 15 mins
Management Liability Insurance Market in 2025: Stability Amid Evolving Risks
Market stability prevails in management liability lines as insurers continue to seek market share. However, expanding technologies, increased litigation and macroeconomic factors are causing growing uncertainty and underwriting concerns.
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Article 7 mins
A Comprehensive Approach to Financial Wellbeing
There is an opportunity to develop a strategy around financial education in the workplace. Globally, our latest data finds 11 percent of employees receive financial education from their employer, but 37 percent expect it. How can employers bridge this gap?
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Article 12 mins
Why Pay Equity Should Be Every Food, Agribusiness and Beverage Leader’s Priority
With growing global regulations and rising stakeholder and talent expectations, pay equity has shifted from a mere HR initiative to a top C-suite priority that goes beyond compliance.
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Article 7 mins
How Technology is Transforming Open Enrollment in the U.S.
A well-structured open enrollment process is one that leverages innovative technology, encourages cost-effective use of healthcare resources and reduces unnecessary spending — benefiting both employees and employers.
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Article 3 mins
Risk Analyzer Suite
Aon’s Risk Analyzer Suite delivers quantitative analytics, improved risk insights and supports operational efficiency.
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Article 15 mins
2025 Life Sciences Outlook: Building Preparedness to Mitigate Risks and Capture Human Capital Opportunities
After a period of significant volatility, a more optimistic outlook is on the horizon for the life sciences industry in 2025. With the right level of preparedness, firms can take full advantage of the potential opportunities the new year will bring.
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Article 6 mins
Decarbonizing Construction for a Low-Emission Future
Decarbonizing construction demands new materials and approaches, with a focus on managing risk and securing capital. By aligning sustainability with business strategy and risk management, the industry can meet net-zero targets.
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Article 8 mins
Employer Strategies for Cancer Prevention and Treatment
Nearly 20 million people get cancer each year,<sup>1</sup> and the impact is far-reaching — from those diagnosed to their loved ones and colleagues. When developing a meaningful cancer prevention strategy, employers must show empathy and compassion while managing rising costs.
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Alert 14 mins
L.A. Wildfires Highlight Urgent Need for Employee Support and Business Resilience
In the face of the L.A. wildfires, impacted businesses’ top priority is their people. A three-phased approach can help build business resilience and mitigate the effects of future events.
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Article 23 mins
The AI Data Center Boom: Strategies for Sustainable Growth and Risk Management
Rapid growth in data center construction, spurred by AI advancements and cloud demand, creates interconnected risks for developers. However, with effective risk management solutions, navigating this dynamic market while prioritizing sustainability is possible.
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Article 8 mins
Mitigating Volatility and Maximizing Profits: A Guide to Risk Capital in the Food, Agribusiness and Beverage Industry
In an industry with tight operating margins, FAB organizations face significant challenges in managing spend and protecting their financial health — requiring industry leaders to adopt a sophisticated approach to risk capital optimization.
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