Today we look at why climate risk and consequence overcost have common similarities. Have you ever been involved in a project whose final budget exploded due to consequence of apparently small, negligible schedule or material risks? Similarly, even thus we record small change in weather averages, big impacts are being noticed. Let’s find out why this happens. Probability of overcost vs. Likelihood of event Lets suppose the consequences of a risk scenario vary between 0 and 20M$ with an average…
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Probabilities of climate change events is the natural extension of our prior blogpost on the ICMM climate change report. Will climate change generate new hazards? Because of the complexity of the issue, let’s start with a few statements. We will discuss climate change effects, but not climate change causes. In addition, let’s note that climate change may generate some “new” hazards, for instance, large scale, generalized: methane releases in permafrost areas (domes, pingos), ocean acidification, frost-free seasons allowing parasite to…
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Consider Climate change risks and the Federal Reserve Bank a follow up to our blogpost entitled (Reporting climate risks). We read that the Federal Reserve Bank of San Francisco will reportedly host the first research conference focusing on climate change. We consider the UK actions in this field, the coalition of 30 central banks and this latest news as a tipping point in the climate change awareness. One that focuses on present, emerging, residual and latent risks. One that may lead…
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