THE EFFECTS OF GLOBAL WARMING ON TODAYS' BUSINESS ACTIVITIES Introduction The global climatic change is taking a different path now in that its effect is not only threatening nature but also business activities in various places in the world. Now businesses can no longer sit down and watch because they now have something to lose. If businesses can effectively integrate strategy, people, processes and technology in pursuit of responding to the climatic change, the result can be positive and it will help solve the upcoming problems, moreover it may help prevent some un foreseen effects which may be catastrophic. But why is the focus on the effects of global warming on businesses? Varying levels of appreciation of the effects of global warming are deeply connected in the differences between direct and indirect impacts of climate change. The question that arises is how the business are impacted by the direct and indirect differences? Some of these effects are potentially threaten to alter the favorable climatic conditions that favor businesses. In this discussion we will focus on the impact of climatic change on business and how business can help counter the arising problem. In addition we will discuss in details the steps businesses should take to help contain the problem of global warming before it gets out of hand. Major effects of global warming on business Global warming poses some major risks on business and these risk threaten to affect the business world in a negative way. Some of these risks are as follows: a) Strategic risk Global warming which basically is a result of climate change may bring about reputation damage. Cruz, R.V. et al. (2007). Reputation damage may include brand erosion and bad publicity. For example a company's reputation can be damaged following negative publicity from a climate-related accident. This may happen to air lines who deal with airplanes and this may cost the company customers and the end results may be losses. Competition may rise to be stiff in that the climatic advantage for instance will no longer be available. For example a business which deals with tourism depends a lot on favorable climate for the animals to survive but when the climate changes to bad the animals may die and the tourism status may be affected, and now the firm will have to face the competition with the other firms in the world. Regulation and political trends will have to change if the climate continues to change. These policies may not favor all businesses in fact some will have to suffer so as they can accommodate the policies. Some businesses can even be swept out because the policies can be very harsh to them. b) Financial risk Credit services suffers in that the terms change. Here the creditworthiness is eroded and the interest rates automatically rise as lenders considers escalating business risks. Timilsina, Y. P. (2015). The liquidity ratio also is affected. The areas affected include cash flow, call risks and opportunity c.