Space Weather As an Emerging Risk


In addition to the typical catastrophic weather risks, risk managers should pay attention to space weather.


“As you’re evaluating risks don’t just look at the ground, you may have to look at the sky as well.”


Stephen Clarke, ISO


Driven by an increase in solar activity, space weather is an emerging risk that can have tremendous implications for business interruption risk. The electrically charged particles and magnetic fields carried by the solar wind can interfere with communications systems, global positioning systems and the power grid, affecting, among other things, business communication, logistics and navigation. Potential problems associated with space weather should be factored into any evaluation of risk.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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