The recent images of damage in Florida following Hurricane Ian are heartbreaking and terrifying. What’s scarier still is that at the societal level we don’t have a strategy for how to handle the worsening perils of flooding, wildfires, and extreme heat.
For individuals, this means evaluating the degree to which your home is truly exposed to flood or wildfire and how badly you would be wiped out if the house were lost. For businesses, this means assessing what else is going on around revenue, cost of doing business, capital structure, hiring, and all the other issues that a C-suite executive also has to consider. In many places in the world, just surviving until tomorrow takes precedent over abstract concerns around natural catastrophes.
Existing holdings: How much is at risk? Might some of the borrowers or companies default in the event of an incident? Or, consider where and what to invest in with this filter .Engage in risk-transfer products including insurance, options, short-selling, credit default swaps, mortgage-backed securities, weather-linked securities, catastrophe bonds, or other derivatives.
Obama just bought this house, 10 cm over the water. He is not too worried, maybe we can all tackle the climate matter with less politics and authoritarianism, and look at the things to do? We have all the technology that is needed..