Risk Managers Confront Climate Change

The number of people arguing about whether the earth’s climate is changing is shrinking rapidly in most of the world, and it’s safe to say that among professional risk managers it’s approaching zero. At the RIMS Canada Conference a couple of weeks ago in Quebec City, climate change was a major topic. Among the speakers was Tim East, director of risk management at the Walt Disney Company. He urged risk managers to establish reduction targets, take continuity planning seriously, and think beyond emergency planning and take a long-range look at how their businesses will be impacted by a variety of scenarios. If East’s comments were somewhat general, the same can’t be said for the recommendations from Lou Gritzo, vice president of research at international insurer FM Global. He notes that one particular risk has already materialized in numerous locales, and for risk managers he has some stark advice: Be above the water level, and ensure any new construction is as far above it as possible.