Mitigating of weather risk makes “the weather excuse” invalid

It is hard to overestimate the impact of the weather on human lives. The weather affects how we feel, what we eat and wear, where we plan travelling to — actually it has its impact on all human activities. This is true not only for aspects of everyday life but also for various sectors of the economy and industry. Any industry is subjected to weather risk to some extent.

Every time when devastating weather phenomena take place many companies gets hurt, there are among them property and casualty insurers, construction firms, real estate developers and shipping companies. It is also an essential issue for energy, oil and gas concerns, agriculture enterprises, ski resorts and many other companies from different spheres.

During many decades, “the weather excuse” was enough to explain poor financial results. In the face of global changing of climate the weather starts playing more and more important role in operational performance of companies, and nowadays there do exist technologies and tools to mitigate weather risk significantly, and thus to make “the weather excuse” groundless.

Steady ability to manage weather risk lets companies reduce direct financial losses and gives instruments to better execution of fiduciary duties to shareholders. Certainly a complex approach to detection and management of substantial business risks should include weather risk management.