Global Economy and Extreme Weather

Morgan Elbot has succesfully finished her RPI internship with the submission of her report on systemic risk. Reflecting upon the large financial losses caused by the Russian heat wave in 2010 and the Thailand floods in 2011, this paper evaluates the business and policy decisions that relate to these extreme weather events and the rising risk of systemic collapse created by our globalized economy. Through incorporating the meteorological details and the resulting economic losses of these long-term natural disasters, conclusions evaluate the global need for greater risk mitigation and adaptation. To effectively avoid systemic risk, a global risk management strategy is proposed as a proactive undertaking to stabilize the world’s economy in a potentially unstable future climate.