Daily Market Update - October 14, 2014

Pentagon calls climate change an immediate threat to national security… Businesses need to assess the risk of infectious disease… President Obama warns of the ‘doomsday scenario’ of cyber terrorism…

Risk Management News

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Pentagon: “Climate change is an immediate threat to national security”

What were once vague concerns about ice caps melting and wildlife dying out has taken a more serious and real threat to the average citizen. A report published yesterday by The Pentagon highlights the potential for the multiple impacts of climate change and says we are seeing examples of this now. The Department of Defense points to the increased risk from terrorism, weather-related events, infectious diseases and humanitarian crises. It warns of disruption to supply chains, and food shortages with wide-reaching impact. On a positive note, it refers to the chance to mitigate some of the effects of climate change if action is taken now. The report is something of a risk assessment document for the military; pointing out how the resources of the armed forces could be challenged by multi-layered effects of climate change. For businesses it contains food for thought about assessing the risk to organizations and the wider community. Read the report.
 
Businesses need to assess the risk infectious diseases

Ebola may be big news now and despite official reassurances that the risk of a widespread outbreak is small, there is nevertheless a risk. Speaking at last week’s SXSW Eco conference Gary Lawrence of technology giant Aecom said that businesses need to be prepared for the possibility of infectious diseases disrupting their operations. Aecom had 10,000 workers in Liberia when Ebola broke out; the company shut down work on a rail network and housing and moved its workers out. Lawrence said he recently advised Walt Disney World in Florida that its business could be affected by an outbreak of dengue fever in the state. He believes that communication and collaboration are vital to tackling some of the world’s biggest risks and says that the habit of thinking in ‘sectors’ needs to change; we all need to work together. Read the full story.
 
President Obama prepared for cyber threat ‘doomsday scenario’

President Obama has called cyber terrorism one of the biggest threats to national security. Speaking on a fundraising tour, the President said that if hackers were able to penetrate government computer systems or breach security walls at major banks there could be a ‘doomsday scenario’ with millions of identities wiped out and chaos resulting. Obama pointed out that while cyber crime was a relatively new threat, it is growing fast and will be one of the biggest issues for whoever is the next US President. Read the full story.

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