 One of the ways we've managed risk in the past is through insurance, so we all pay a premium into a common pool of money When something bad happens to us like our house burns down We get a payment out of that pool and and that means that instead of having a huge shock to the system Which we can't cope with we've been able to manage that by constant small payments And that's been a really great way of managing some risks and when we look in the past those risks have relatively been Consistent in the sense of they're relatively the same risk from year to year the same probability of something bad happening But we don't know which year that's going to happen and that's why insurance is good But increasingly we're seeing the probabilities of an event happening a bad fire happening or a flood happening changing And that means that our insurance needs to change as well So it needs to be include the sorts of things that are changing so House on a floodplain is much more likely now to get flooded than it used to be so the insurance premium needs to go up to Compensate for that risk So that's one of the ways we can manage it other ways of course not build on floodplains or in fire prone areas Or if we do to ensure that our houses are floodproof or fireproof and and so increasingly we're seeing Many different things come together to manage risk So we're seeing location is really important the way we do things is really important how we respond to events such as a Cyclone coming in we've got warning now so we can actually prepare for that And we can also start to put in place regulation That ensures that people actually are doing the right thing in a building houses Which are cyclone proof in northern Australia? And so we can start to think about managing that risk in many different ways But with climate change an important part of managing that risk is reducing our greenhouse gas emissions So we don't ramp up the extreme event increases that we've seen already So climate change is already making extremes worse pretty much all over the world And if we let climate change rip that's going to be even worse and worse over time