New research finds the economy could be plunged into recession — or a series of recessions — because financial markets don’t account for climate risk.  Without a better knowledge of the risk posed by extreme weather events, the average investor can only hope that the next extreme event won’t trigger a sudden correction.

Paul Griffin, Distinguished Professor at the UC Davis Graduate School of Management, has been studying this “unpriced risk” and how it can affect markets and the economy.

In this episode of The Backdrop, Griffin discusses the magnitude of climate risk, what companies and governments can do to lessen the risk and how people can lower their financial exposure to it.

The Backdrop podcast is a monthly interview program featuring conversations with UC Davis scholars and researchers working in the social sciences, humanities, arts and culture.  It is available free, on demand at Apple Podcasts, Google Podcasts, Amazon Music, TuneIn, Stitcher, Spotify and YouTube.  The Backdrop is hosted by public radio veteran Soterios Johnson.