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Recognizing this, the financial markets offer new forms for protecting against weather risk to revenue.
SCOTT MATHEWS Manhattan, June 18 The writer is a consultant in weather risk management.
"This is the first of potentially several days of a severe weather risk.
The weather market's view that climatic events are commodity assets (or liabilities) enables businesses to hedge weather risk and trade it off their books.
Paul Walsh, senior business meteorologist at Storm Exchange, a weather risk management company in New York, said he viewed the hurricane as ominous.
Sonu Agrawal of Weather Risk notes growing demand for detail on highly localised conditions and short-term rain and hail forecasts.
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But we can also buy insurance if we think that we are still exposed to major weather risks.
NSW police also urged visitors to Sydney to delay attending the Vivid festival and Sydney Harbour due to the serious weather risks that remained.
If this winter tells us anything, it's that we'll have to remain on guard for familiar weather risks as well as the evolving ones brought by climate change.
Claire Wilkinson, a partner at Willis's weather risks practice, said: "It is heartening to see so much support from the industry for a project that has the potential to do so much good".
Rowan Douglas, a member of the report's working group and chair of the Willis Research Network, said: If two otherwise identical international companies have different resilience to extreme weather risks, then one should have a proportionately lower share price or valuation to reflect this higher financial risk.
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