risk informed decision Archives

Insurance denial amid climate change

We explore today how insurance denial amid climate change will impact assets and other aspects of business. In particular, we think at fires like the Australian bushfires and Fort McMurray (Canada) fire in addition to increasing rains leading to flooding. These will undeniably be a ‘big drag’ on growth and have already generated invaluable losses to biodiversity. Furthermore, insurance denial will become a problem as we discussed back in 2016 and even as far as 2009. Insurance denial amid climate change…

Broken window fallacy parable amid risk misinformed decision

The broken window fallacy parable amid risk misinformed decision is the belief that destruction is good for the economy. Frederic Bastiat, a French economist, introduced the concept in 1850. It illustrates why destruction and related recovery expenditures are not beneficial to society. The broken window fallacy parable amid risk misinformed decision The aim of the broken window fallacy parable is to discuss hidden, or ignored effects of opportunity costs and unintended consequences on economic activities. The opportunity cost is the loss of…