What kind of help are CEOs asking for to avoid weather-related disruptions?
Our clients focus on prevention. They think: “A business disruption gives me loss of market share, maybe permanently.” They lean on us to provide them with the expertise about how to avoid those disruptions. First we help them assess their risks and develop preventive programs. Then we help develop a business continuity plan in case something does happen. The last step is providing a risk-transfer product, or insurance. Isn’t it harder to anticipate disruptions in view of how globalized everyone’s supply chain has become? Not all multinationals make what they sell anymore. More and more of them make products in places that are 5,000 and 10,000 miles away from where they sell them. How will their enthusiasm for global supply chains be affected by weather disruptions? The supply chains are getting very, very stretched. I don’t know if it’s because of climate change, but clearly there is an increase in the frequency and severity of disasters. At the same time, urbanization is increasingly
