Corporate Weather Risk Practices
2008 Benchmark Study

About this Study

Corporate America has a keen new focus on risk management. Unfortunately, it suffers from a blind spot.

While senior executives express concern about the impact of global climate change and day-to-day weather volatility on their business performance, when it comes to taking proactive steps to manage their weather risk, half concede that their companies are not well prepared.

To gain a more precise understanding of weather risk practices among corporations, the CME Group and Storm Exchange commissioned a national benchmark study of 205 senior-level executives. The study represents one of the largest and most comprehensive studies of its kind among U.S. and Canadian corporations.

Industries profiled include: Energy, Agriculture, Retail, and Outdoor Entertainment. Executives interviewed include Presidents, CFOs, Treasurers, Risk Managers, 71 Pages

$1200.00

Click HERE to see a sample PDF of the study.

For more information call 646.237.5371 or sales@stormexchange.com

Who Will Benefit from the Study Findings?

• Corporate CFOs, treasurers and financial staffs at weather-sensitive companies that include energy, agriculture, retail/manufacturing, outdoor entertainment, aviation, among others.
• Risk Managers
• Corporate meteorologists
• Insurers, brokers, investment banks, trading firms and others who advise on risk, originate derivatives transactions, or buy and trade financial instruments with embedded weather sensitivity.
• Weather forecasting services and data providers

Study Objectives

The primary objective was to understand, benchmark, and document corporate best practices in weather risk management and to understand buyer/usage patterns for various weather-risk services that include weather derivatives, forecasting tools, weather data and information services and training.

Specific objectives were to:

• Profile corporate exposures, concerns, and preparedness relative to the impact of the weather on business performance
• Understand how these factors affect the ability of companies to take action in managing weather
• Determine the extent to which weather derivatives and other weather-risk practices are being used by US companies that how that use varies
• Learn how various weather risk management practices might be used in the future
• Undertake a psychographic segmentation analysis of executives in weather-impacted industries to gain insight into the attitudes that influence how executives think about and respond to weather volatility and weather risk

Table of Contents

• Introduction 3
• Executive summary 6
• Perceived impacts, exposures and concerns about the weather 11
• Coming to grips with weather risk 24
• What executives say about weather risk 30
• How US companies are preparing to deal with weather risk 34
• Use of available market solutions 42
• What executives say about protecting their companies from weather risk 46
• What executives say about reducing company income, expenses and operational costs to weather risk 52
• Customer profiles for weather risk services 55
• Appendix 64

About Storm Exchange

Storm Exchange is a leading provider of weather-related financial risk and information services.

The company helps corporations improve performance by identifying, quantifying and controlling the impact of weather on their income and expenses. Storm Exchange also serves investors, insurers and other financial industry participants with analytic solutions that offer greater insight into how weather impacts investment and risk portfolios.

Storm Exchange solutions include industry-specific weather indices, data/analytics, forecasted weather risk scenarios, and hedging programs. These solutions address the fundamental drivers of financial performance that result from exposures to precipitation, wind, temperature and other climate variables.

Storm Exchange is headquartered in New York and operates a weather research center in State College, PA.