Physical & Environmental Risks
Natural disasters, climate change, property damage, and environmental hazards
Critical Severity Risks
Natural Disaster
✅Risk of catastrophic natural events causing physical damage to assets, halting operations, and incurring major recovery costs.
Climate Change Risk (Physical)
⏳Risk of physical impacts from climate change and extreme weather events – e.g. more frequent or severe hurricanes, floods, wildfires, heatwaves – causing property damage, supply chain disruptions, or operational downtime . Also includes long-term changes (sea level rise, resource scarcity) affecting facilities and operations.
Critical Infrastructure Failure
⏳Dependence on external critical infrastructure (energy, water, communications, transportation) whose failure can cause widespread business disruption.
Fire & Explosion
⏳The risk of catastrophic damage to facilities, equipment, and inventory, and potential for employee injury or death, due to fire or explosion.
Natural Disasters
⏳Large-scale damage to physical assets and business interruption caused by natural catastrophic events, with severity dependent on geographic location.
High Severity Risks
Premises Liability
⏳The legal responsibility of a property owner for injuries or damages suffered by third parties (customers, visitors) on their premises.
Theft & Physical Security
⏳The risk of loss or damage to physical assets due to theft, burglary, robbery, or vandalism. This could involve stealing inventory, equipment, or intellectual property in physical form. It remains one of the most common security threats to organizations . Adequate security measures (locks, alarms, surveillance, access control) and employee vigilance help mitigate theft risk.
Vandalism & Sabotage
⏳Intentional damage or destruction of a company's physical assets by internal or external actors, leading to repair costs and operational downtime.
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