Johnston, RI (June 16, 2020) \u2013 Although the pandemic dominates the world\u2019s attention, climate risk is simmering in the background, with more than 3 in 4 (77%) CEOs and CFOs of the largest companies in the world admitting their firms are not fully prepared for the adverse financial impact of a changing climate. Moreover, 8 out of 10 (82%) believe their companies have somewhat to no control over such an impact on their business.<\/p>\n
The findings stem from a global survey of several hundred CEOs and CFOs at companies with US$1 billion or more in revenue across a wide variety of industries in North America, Europe and Asia Pacific. The research was commissioned by FM Global, one of the world\u2019s largest commercial property insurers, and conducted by ENGINE Insights, a leading market research and analytics firm.<\/p>\n
Three-quarters of respondents (76%) said their organizations are somewhat to significantly exposed to climate risk. Floods, droughts and wildland fires topped the list as the three exposures that \u201cconcern their companies the most\u201d and \u201ccould most negatively affect their financials.\u201d<\/p>\n
\u201cThe findings are concerning as hurricane and wildfire seasons begin in the U.S. and the threat of flood is on the rise globally, combined with the challenges the pandemic has placed on businesses \u2013 many of which are fighting to survive and recover,\u201d said Katherine Klosowski, vice president, manager of natural hazards and structures, FM Global.<\/p>\n
\u201cThe combination of being underprepared for natural catastrophes, volatility in financial markets, and the threat of an economic recession couldn\u2019t come at a worse time for many companies,\u201d added Klosowski.<\/p>\n
The survey results build upon the World Economic Forum\u2019s report from earlier this year, released just before the pandemic struck, that declared extreme weather events plus failure of climate change mitigation and adaptation as top risks over the next 10 years.<\/p>\n
\u201cFortunately, most losses stemming from climate-related events are preventable, and loss prevention can help preserve a company\u2019s value and resilience, especially during the pandemic,\u201d said Klosowski. \u201cHowever, the challenge many companies will face is adequately preparing for such events if stay-at-home orders remain in place, which could exacerbate the impact climate-related events have on an already fragile bottom line.\u201d<\/p>\n
The research<\/a> is based on an online survey conducted in February 2020 of 150 CEOs and 151 CFOs equally across three regions (North America, Europe and Asia Pacific). Respondents lead companies over US$1 billion or more in revenue across a wide variety of industries. One-third of respondents lead companies of US$5 billion or more.<\/p>\n Established nearly 200 years ago, FM Global<\/a> is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its client-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world\u2019s largest organizations, including one of every three Fortune 1000 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions, combining property loss prevention with insurance protection.<\/p>\n Source: FM Global<\/i><\/p>\n Tags: climate change<\/a>, coronavirus<\/a>, epidemic<\/a>, FM Global<\/a>, Natural Catastrophes<\/a>, survey<\/a> COVID-19 pandemic could exacerbate the impact of natural catastrophes: FM Global survey of CEOs & CFOs Johnston, RI (June 16, 2020) \u2013 Although the pandemic dominates the world\u2019s attention, climate risk is simmering in...<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/18835"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=18835"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/18835\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=18835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=18835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=18835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}About FM Global<\/b><\/h4>\n
\nRead the original article at Insurance-Canada.ca <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"