Climate change is challenging the utility industry’s traditional risk management assumptions. Many of the most costly natural disasters have occurred over the past decade. While there are solutions to address climate change risks, each comes with their own possible risks to the utility industry, including financial, operational, and regulatory. S&P Global Ratings expects the utility industry in the U.S. and Canada to manage climate change risks through a combination of insuring a higher percentage of utility assets, system hardening, and improving regulatory mechanisms for cost recovery following a destructive weather event. Effective enterprise risk management is a key factor for successful management teams. This complex endeavor requires sophisticated leaders with the skills to identify risks before they occur and take effective measures to diminish the impact of their destructive outcomes when they do. As our climate continues to change, effective management of weather-related risks is becoming more complex […]