Sample interview questions: How do you assess the impact of natural disasters on investment portfolios?
Sample answer:
Assessing the Impact of Natural Disasters on Investment Portfolios
1. Direct Property Damage:
* Assess potential damage to physical assets, including buildings, equipment, and infrastructure, owned by companies within the portfolio.
* Consider the geographic location, frequency, and severity of historical natural disasters in the affected regions.
2. Supply Chain Disruptions:
* Evaluate the impact of natural disasters on supply chains, including disruptions to transportation, logistics, and raw materials.
* Identify companies vulnerable to supply chain vulnerabilities and assess potential delays or shortages that could affect earnings.
3. Business Operations and Revenue Streams:
* Analyze the impact of natural disasters on companies’ business operations and revenue streams.
* Consider potential revenue losses due to closures, reduced demand, or disruptions in production or distribution channels.
4. Insurance Coverage and Claims:
* Review insurance policies and assess the level of coverage for natural disasters.
* Estimate potential insurance payouts and their impact on company cash flows and balance sheets.
5. Government Response and Economic Impact:
* Monitor government response measures, including disaster relief funding and tax breaks.
* Assess the potential impact of governmen… Read full answer