Climate risks are becoming an increasingly important part of risk assessment and property valuation. For banks, insurance companies, and investors, it is a matter of understanding which properties are exposed, what the risk profile looks like, and how decision-making data can strengthen risk management.
From General Risk to Geographic Analysis
In the past, climate risks were often assessed at a general level. Today, it is possible to analyze risks in much greater detail by combining property information, geodata, elevation data, and climate data.
This makes it possible to identify which properties are exposed, understand how the risk profile differs between different properties, and create a better basis for decision-making regarding lending, investments, and risk assessments.
The risk profile varies between properties
Two properties in the same area can have completely different risk profiles. Small differences in elevation, soil conditions, proximity to water, or terrain can affect exposure to risks such as flooding, erosion, or landslides. Therefore, risk assessments need to be based on geographic analyses rather than solely on address information.
The risk profile is influenced not only by the property’s geographic location but also by what is on the property. An undeveloped property often has a different risk profile than a property with buildings. The location of the building is also important. A building situated low on the terrain may have a different level of exposure than a building located higher up on the same property. To create a relevant basis for decision-making, therefore, both the property and the location of the buildings must be analyzed.
How is a reliable basis for decision-making created?
A climate risk analysis is often based on combining several different data sources.
A climate risk analysis relies on a combination of geographic data, property information, and models that together provide a more accurate picture of a property’s exposure. Together, they offer a more comprehensive view of how a property or portfolio might be affected.
From Analysis to Decision
For banks, climate risk data can be used to supplement credit and portfolio analyses. For insurance companies, it can contribute to risk assessments and loss prevention efforts. Property owners and investors can use these analyses to prioritize actions and plan long-term investments.
What they all have in common is the need for reliable decision-making data.
Better decision-making data leads to better risk assessments
Climate risks are geographical in nature. Therefore, risk assessments need to be based on the property’s actual conditions and surroundings, rather than on general assumptions. By combining geographic analyses with property information, it becomes possible to move from general assumptions to more accurate and fact-based decisions.
Summary
Climate risk data is not just about identifying risks. It gives decision-makers a better foundation for understanding exposure, prioritizing actions, and making well-informed decisions about properties and investments.
When property information, geodata, and geographic analyses are combined, climate risks can be analyzed in a more accurate and useful way.
Would you like to understand how climate risks can be integrated into risk management and decision-making processes?
Explore our knowledge hub on climate risksfor real estate or learn more about how Metria Climate Analysis helps organizations analyze risks at the property and portfolio levels.
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About Metria
Metria offers digital solutions and services in GIS, geodata, real estate, and business information. Our offering covers the entire process—from identifying a client’s needs for geodata, real estate, and business information to collecting, analyzing, and visualizing data to generate insights that lead to smarter, safer, and greener decisions.
Since spring 2022, Metria has been part of Spir Group, a Nordic group with approximately 260 employees in Norway and Sweden.
Spir Group is a Nordic company that simplifies unnecessarily complex processes by collecting and making information accessible to consumers, the public sector, and the private sector.
Spir Group is the parent company and the visionary force behind several software subsidiaries, all dedicated to delivering business-critical technology that sustains and develops society.
Our clients range from real estate agents, banks, insurance companies, appraisers, real estate developers, media companies, builders, property owners, engineers, and energy companies to manufacturers of building materials.
We are a team of more than 260 colleagues with deep domain and technology expertise. Spir Group does more than just collect and share information. We enable innovation and growth that strengthen trust between people, businesses, and society.
For more information about Spir Group, visitwww.spirgroup.com.