Management Consulting

In response to the devastating L.A. wildfires, businesses faced significant challenges, particularly regarding employee safety and support. Aon’s Wildfire Client Pulse Study revealed that 66% of organizations lacked a formal disaster response policy, yet 79% felt prepared to assist employees during the crisis. The wildfires are projected to result in insurance losses exceeding $30 billion, highlighting the urgent need for effective risk management strategies. To address these challenges, Aon proposed a three-phased approach to build business resilience. During the catastrophe, organizations were advised to establish a cross-functional task force to coordinate emergency responses, maintain communication with employees, and provide real-time safety guidance. Specific actions included adjusting leave policies to offer additional paid leave to affected employees and ensuring access to health insurance for immediate medical concerns related to the wildfires. In the immediate aftermath, companies were encouraged to report losses to their insurers promptly and develop long-term risk mitigation strategies. This involved reviewing insurance policies, prioritizing recovery efforts, and providing mental health support to employees affected by the trauma of the disaster. Aon’s survey indicated that 34% of companies were considering offering non-financial support, such as workshops for navigating insurance claims. For long-term resilience, Aon emphasized the importance of adopting fire-resistant materials, creating defensible spaces around properties, and collaborating with local authorities for effective wildfire mitigation. By implementing these tailored strategies, organizations can enhance their preparedness for future natural disasters, ultimately protecting their employees and ensuring business continuity.