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Weather Now A 'Greater' Threat To Agribusiness

Published on Jun 27 2017 9:54 AM

Weather Now A 'Greater' Threat To Agribusiness

Weather patterns are beginning to pose even a greater threat to the agricultural business, according to a recently released survey by Aon Global Risk Management Survey.

Climate pattern changes are at the top of CEO’s concerns regarding their business, along with cybercrime and global politics. The bi-annual survey, released by risk management company Aon, shows that commodity price risk is also another major risks to agribusiness.

Kurt Cripps, managing director of Aon Global Head of Weather Risk, commented, “For 88% of businesses’ profits and losses to be directly impacted by weather is a significant finding for Irish business. In a country where the agriculture and hospitality industries are so important to the economy, we have always known that there is some weather risk for certain sectors.

“To see it on such a large scale puts into context how hidden risks and volatile, uncontrollable factors can threaten profits. It is imperative for all companies to assess their risks and figure out how best to manage them.”

Rory Moloney, CEO for Aon Global Risk Consulting, said, “The food and beverage sector is particularly affected by more extreme weather conditions and price volatility and we have a specific service for that market.”

The survey also outlined notable threats to agribusiness include increasing competition, damage to reputation, and regulatory/legislative changes.

© 2017 - Checkout Magazine by Patrick Lewers

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