Weather impacts retail and business, such as clothing selection, leisure, and consumer purchases. It can even influence home improvement project choice and outcomes.
Within retail and business, an ignored fluctuation in daily, weekly, and seasonal weather patterns can lessen predicted sales or increase costs.
An adverse day or period (a day or duration when weather is not optimal for the season) can play a critical role in revenue loss.
Three steps to reduce weather-related losses.
Examples of Adverse Period Risks:
Hours and Specific Days
If the presence of the adverse weather conditions cannot be tolerated at all, a business or entity will look to transfer risk stemming from low attendance (revenue reduction) or outright cancellation (revenue elimination). Adverse weather is defined and risk must be transferred on a specified date or range of dates.
A business must work through the weather risk management process to identify, educate, and research to successfully mitigate their risk. For optimal risk transfer through weather indexes, a client’s financial information must be included to identify a tolerable risk level.
Examples of Hourly and Specific Day Risk