Weather risk management: A Step in the right direction

Valerie Cooper

American Bankers Association, 2003, vol. 16, issue 2

Abstract: In the US alone, the Bureau of Economic Analysis has stated that approximately $2.2 trillion of the US Gross Domestic Product displays sensitivity to the weather. As a result, an entire industry has been created to stave off the financial effects of unfavorable weather conditions, which hinder fiscal productivity. Beginning in 1997, weather risk management created an avenue for industries to manage their risks associated with weather. Through the use of financial risk management tools, businesses in a variety of industries could stabilize annual revenues that otherwise would be affected by changes in weather such as temperature, wind speed, snowfall, rainfall, and storm activity.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 2003
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