Canadian Underwriter - Vol. 75 Nbr. 8, August 2008
O'Hearne, Brian
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Given the increasing number of opportunities for managing weather-related risk, Canadian markets have a vastly improved ability to use weather risk management contracts to protect against a myriad of weather-related risks that trigger earnings volatility. The weather risk management market has experienced significant growth over the last decade. This is due in large part to increased awareness of the benefits of this form of risk mitigation. Using financial products to hedge risks has been widely recognized as an acceptable and efficient means to achieve a balanced portfolio and reduce volatility of an organization's revenues and earnings. Environmental events have always been a wild card affecting an organization's financial plan, but severely adverse weather conditions can have a devastating impact upon an organization's balance sheet. They should be properly managed using a hedging plan uniquely tailored to an organization's needs.
Hedging Your Bets
Given the increasing number of opportunities for managing weather-related risk, Canadian markets have a vastly improved ability to use weather risk management contracts to protect against a myriad of weather-related risks that trigger earnings volatility.
The weather risk management market has experienced significant growth over the last decade. This is due in large part to increased awareness of the benef...Try vLex for FREE for 3 days
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