Experts Urge Israeli Organizations to Manage Dependencies After Venezuela Earthquake

A severe earthquake struck Venezuela about two weeks ago, causing extensive damage that will affect the country for years. An Israeli delegation sent to Venezuela was asked to extend their stay by two weeks, highlighting concerns about Israel's own preparedness for a similar event and its potential impacts. Noam Farkash, partner at GT Israel, emphasized that the real risk lies not just in the earthquake itself but in the economic dependencies that amplify damage. Venezuela, while not a major global economy, plays a significant role in the energy market, and disruptions to its infrastructure can ripple through global supply chains, affecting oil exports, shipping costs, and international companies often unaware of their interconnected vulnerabilities. Farkash noted that most organizations map their suppliers but fail to identify true dependencies, such as shared ports, shipping companies, or energy sources, which represent single points of failure requiring a shift from risk management to dependency management.

Ariel Pokotinsky, CEO of ECOWALL and expert in industrialized construction, highlighted the importance of building envelope resilience in earthquake preparedness. He explained that while Israeli public discourse focuses on structural strength and safe rooms, the building facade often lacks adequate regulation. Unlike many European countries with strict standards for earthquake-resistant cladding systems, Israel frequently allows only case-by-case engineering approvals without mandatory codes. Pokotinsky warned that even if a building’s frame remains intact, failure of the facade can cause heavy panels to detach, posing serious risks to residents and the public. He called for regulatory reforms to ensure building envelopes are held to the same rigorous standards as foundations and frameworks.

In Israel’s high-risk environment, earthquakes also pose significant challenges to the insurance sector. Maor Eliasi, CEO of Orient Insurance Agency, explained that such disasters instantly alter the country’s risk profile. The insurance market must reassess coverage adequacy, pricing, and readiness for potentially unprecedented claim volumes. Eliasi cautioned that while earthquakes test infrastructure and emergency response, they also challenge the financial resilience of the state and the insurance industry’s ability to absorb shocks without passing excessive costs to policyholders.