Weather Risk - Drought
By Joe Anderson, CPCU, ARM AFSB, CBRA
Principal & Fractional Chief Risk Officer
Fascinating article describing the already significant impact that a warm winter, with a historically low snowpack, will have on the Rocky Mountain West, and by proximate cause, the rest of the West.
Here are some of the impacts that will be far-reaching:
1) Ranchers are not able to graze as much and will require more imported food for their herds. This will undoubtedly raise their costs to market.
2) Crop farmers will have less water to work with. Lower yields.
3) Cities will restrict water use. Salt Lake City has already mandated a 10% water reduction.
4) Water dependent tech companies, like semiconductor, data, and AI centers, will be scrambling.
5) Water dependent states, like California, Arizona, and Nevada, will be in a tough position to purchase additional water.
The impacts of drought are far-reaching, and should be planned ahead for. It reminds me of the story of Joseph in Egypt in the Bible. There was a famine in the land (it could have been caused by drought), and he planned ahead seven years and stored up food to be prepared.
Do you have a backup food and water supply? I like what Idaho Governor Brad Little described in his recent State of the State address. Idaho is planning to expand their above ground reservoirs - this is good. But they are also investing in technology and equipment to refill their underground aquafers - this is great.
At Fortify Risk & Safety, we help companies plan ahead for business disasters, some of which can be caused by natural disasters, like drought. If you would like an updated and professionally-vetted business resiliency plan, we can help.
Contact us here: https://lnkd.in/
Joe Anderson began his insurance career with Marsh of Boise in 2001 and has enjoyed his 25-year career in risk management and insurance. As founder of Fortify Risk & Safety, his desire is to bring his expertise and strategic skills to companies who want to be elite in Risk Management & Safety Culture.
Over the years, he has gravitated to complex and challenging risks, exposures that were hard to insure or manage. When other professionals settled for higher-priced options or less coverage, Joe would not settle there. He pushed forward to improve the core risk function of his clients, build profitable partnerships with insurance companies, and invest in internal and external risk management personnel.
His company, Fortify Risk and Safety, is an independent, fee-for-service, fractional risk and safety firm. With an outsourced-team-approach, his industry veterans partner with clients to reduce risk in business and make businesses more resilient, agile, & profitable.
Written By: Joe Anderson, CPCU, ARM AFSB, CBRA
Principal & Fractional Chief Risk Officer
At Fortify Risk Management, our risk management veterans have on average 30+ years of corporate experience in managing risk, with companies like Carnival Cruise Line, Boise Cascade Company, Fluor Corporation, Sunkist Growers, and Idaho Power. We bring together risk executives with different backgrounds in a team to work with you to better optimize your risk management approach as you grow, increase profits, and create a great place to work for your employees.
Contact us today to find out how we can help: