ABSTRACT
The approach to climate change policy development may be fully understandable on the basis of human decision-making, but it is contrary to whole idea of risk-based analysis. It also complicates the nature of private sector risk assessment and management. Stresses are building in the climate system, stresses that current climate science suggest will inevitably will be relieved through physical or policy ‘climate quakes’, much as earthquakes relieve tectonic stresses. Climate quakes have the potential to dramatically affect long-term business supply chains, operations, infrastructure, and even employee health and productivity. The potential for business risk and business opportunity based on climate change and climate change policy is greater now than in the past, and will continue to grow as the gap between climate science and climate policy continues to expand. It is important that corporate risk management strategies keep up.
