2/19/2023 0 Comments Alien invasion![]() The extreme risk in this case is a monstrous asteroid that would cause devastation on a global scale. For example, minor asteroids strike the earth with relative frequency, sometimes even causing quite severe but localized damage. And generally, extreme risks are at the far tail of spectral risks, a risk measure weighted more toward bad outcomes. They are generally ever present, although our awareness of them, and their likelihood, may be heightened by current events. For the dinosaurs, the list would include the Yucatan asteroid and the ensuing conditions that caused their extinction.Įxtreme risks are not the same as emerging risks. Historical examples include the formation of OPEC and the oil embargo, which altered the structure of the global energy market and fostered a global wave of inflation two world wars, each of which fundamentally altered the world political order and the arrival of Europeans (with smallpox) in North America, killing off an estimated 90% of the Native Americans in New England. What Are Extreme Risks?Įxtreme risks are potential events that are very unlikely to occur but would have a significant impact on the global economy, existing social orders or current political regimes. We are also prioritizing risks differently. Further reflection motivated us to expand our list from 15 to 30 extreme risks to accommodate risks that can’t be classified as financial or economic. We published our first list of extreme risks in 2009 and updated the list in 20. The potential for major disruption to world economies and daily life was intriguing enough to prompt a Towers Watson team to begin studying extreme risks in 2008. These risks, while unlikely to occur, would have significant implications for insurers and, more globally, nations and world financial markets and infrastructures. Recently, Towers Watson updated its list of extreme risks to the world’s economic, social and political stability. If you think extreme risks are too remote to worry about, just consider what the Yucatan asteroid did to the dinosaurs. Specializes in P&C risk consulting and software. ![]() ![]() Specializes in investment and asset research.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |