Disasters continue to generate significant impacts across Latin America and the Caribbean. Many occur suddenly, such as storms or hurricanes; others unfold gradually, like droughts. Yet their consequences are consistent: loss of life, disruption of livelihoods, infrastructure damage, and severe economic impacts. Between 2000 and 2024, more than 2,350 disasters were recorded in the region, affecting over 320 million people.
International cooperation and public budgets are limited and remain largely reactive. In this context, private sector engagement has become essential to enhancing investments in prevention and, in so doing, to help protect employees, communities, and business operations. Resilience is not only a matter of public policy but a collective effort that requires the involvement of industry, business networks, and productive territories.
Sustainable business development is closely tied to the resilience of the communities in which they operate. Private sector actors are increasingly cognizant that risk is not an external factor but a direct threat to their workforce, infrastructure, and operational continuity. In response, more and more companies are stepping up and taking on active roles in disaster risk reduction such as by co-investing in early warning systems, contributing to territorial planning, and providing data, expertise, logistics, or technological solutions to strengthen collective resilience.
These partnerships do not form automatically. They require clear regulatory frameworks, long-term vision, sustained political will, and strong leadership. They also require a shared understanding that resilience is not built overnight, nor in isolation. Disaster risk reduction and resilience-building are progressive, collective processes that face challenges and demand ongoing commitment, cross-sectoral coordination, and a strategic focus on prevention.
From the perspective of the United Nations Office for Disaster Risk Reduction (UNDRR), the way forward is clear: investing in prevention and mitigation not only saves lives—it also protects economic value. For every dollar invested in resilience, four to seven dollars are saved in response and recovery. However, according to case studies featured in the 2024 Regional Assessment Report on Disaster Risk in Latin America and the Caribbean (RAR24), only about 6% of public spending in the region is allocated to disaster prevention. Eighty percent is still directed toward compensatory measures.
“Disaster risk reduction is not solely an institutional responsibility. It is a shared task that requires vision, political leadership, and coordinated action among governments, the private sector, and communities. Only through concrete partnerships can we anticipate threats and protect what matters most: people, livelihoods, and the stability of our territories,” said Nahuel Arenas, Chief of the UNDRR Regional Office for the Americas and the Caribbean.
According to the latest report from the Swiss Re Institute, only approximately 17% of total economic losses from disasters in Latin America in 2024 were insured. This gap highlights the structural limitations of the insurance system in the face of increasing threats and sends a clear warning: without substantial risk reduction, the risk of uninsurability will grow—particularly in highly exposed areas where some insurers have already begun to withdraw their operations.
The good news is that solutions already exist. UNDRR promotes a diversified strategy that includes prospective, corrective, and compensatory risk management—a model that not only helps companies avoid losses, but also improves the return on their investments. Integrating resilience into investment decisions, applying seismic building codes, replacing flammable materials, upgrading drainage systems, supporting multi-hazard early warning systems, allocating risk-informed dedicated budgets, establishing emergency funds, and preparing and updating contingency plans are some of the measures that can make the difference between business continuity and operational disruption.
Resilience-focused business networks are already active in the region. ARISE, the global private sector initiative led by UNDRR, brings together more than 250 companies in Latin America and the Caribbean, with the potential to influence over 100,000 businesses. Through this platform, the private sector works in coordination to build capacities, share knowledge, and advance a safer, more sustainable, and risk-informed economy.
This regional commitment will be further reflected next week in San Pedro Sula, Honduras, during the Sustainability Week and IV ARISE Forum 2025 for the Americas and the Caribbean. From 13 to 16 May, under the theme “Shaping a Sustainable and Resilient Future,” the event will bring together private sector leaders, governments, international organizations, ARISE networks, civil society, and financial system actors to address key topics such as resilient supply chains, climate action finance, early warning systems, risk transfer mechanisms, resilience education, and will highlight the vital role of women in business continuity and resilience. It provides a valuable opportunity to consolidate partnerships, exchange concrete solutions, and reinforce the role of the private sector as a key player in building a safer and more sustainable future.
Resilience doesn’t happen by chance. It requires intent, strategy, collaboration, and sustained effort. Recognizing risks is not enough—we must anticipate them and act accordingly. Resilience is a key component of any business strategy that requires investment, coordination and planning. And above all, it is built in partnership. In a time of increasing risks and mounting uncertainty, the private sector faces two paths: take action or bear the consequences. Failing to invest in resilience is, in effect, financing the disasters of the future.