Extreme Weather Risk is Changing—Are Businesses Ready?

From flooding and drought to hurricanes and wildfires, natural hazards are evolving faster than many organizations realize. In episode two of Sound Policy, we explore how extreme weather is reshaping business risk—and what leaders can do to prepare. Based on FM’s survey of nearly 1,000 risk decision-makers and insurance brokers, 62% report experiencing at least one severe business disruption from natural hazards in the past three years. Disruption—not direct property damage—has emerged as one of the top concerns, revealing a critical gap between how clients and brokers perceive risk. Host Brian Amaral is joined by FM's Dr. Angelika Werner, Vice President, Research Area Director for Natural Hazards and Climate, to break down what’s driving today’s most underestimated threats—and how science, data, and engineering can help businesses stay resilient. In this episode, you’ll learn: 🎙️ How AI is changing weather and climate risk assessment. 🎙️ Why flooding is a complex and underestimated natural hazard. 🎙️ How rainfall and climate patterns can increase business downtime. 🎙️ Practical steps companies can take to reduce operational disruption. 🎙️ Where clients and brokers see natural hazard risk differently—and why. From understanding tomorrow’s risk to adapting operations to meet it, this episode connects cutting-edge climate science to real-world business decisions. 🎧 Subscribe to Sound Policy for expert conversations on risk, resilience, and the science shaping tomorrow’s business environment. Available on YouTube, Spotify, and Apple Podcasts. 🔗 Explore more from FM: 2025 FM Natural Disasters Report: https://www.fm.com/resources/nathaz-toolkit/nathaz-report-download FM NatHaz Toolkit and Webinar (on-demand): https://www.fm.com/resources/nathaz-toolkit Understanding the Future of Extreme Weather: https://www.fm.com/insights/new-tools-are-helping-address-growing-extreme-weather-risks #WeAreFM #ProtectYourPurpose #SoundPolicy #ExtremeWeather #NaturalHazards #FloodRisk #ClimateRisk #BusinessResilience #RiskManagement