Floods are the most frequent type of natural disaster and occur when an overflow of water submerges usually dry land, according to the World Health Organization (WHO). Although there may be specific geographical reasons, studies conclude that overall climate change can trigger flood events.
Aside from heavy rainfall, which causes most flood damage, melting glaciers and snow-caps are also concerning. Increasing population density, accumulation of assets, and rising urbanization exacerbate the situation further. Floods affect regions differently, with high-income areas facing more significant damage costs and low-income regions facing more deaths.
Micro, Small, and Medium Enterprises (MSMEs) are vulnerable because they typically have fewer financial and technical resources to cope with risks and negative community impact. What’s more, the lack of proper risk mitigation strategies often forces governments and taxpayers to bear the economic burden.