Weather Risk and Financial Markets (3) This course will introduce the role that weather plays as a source of financial and operational risk for businesses, market and other institutions.
METEO 460 Weather Risk and Financial Markets (3)
The course introduces students to the role that weather plays as a source of financial and operational risk for business, markets, and other institutions. It also introduces the tools and concepts for weather risk management-the insurance products, financial instruments, and decision tools that organizations use to manage, reduce, and transfer their weather-related risks. Major topics include: (i) The concept of risk and the role of weather as a driver of economic risk; (ii) Probabilistic approaches to weather forecasting; (iii) Techniques for valuation of weather derivatives; (iv) Links between weather and markets for energy and agricultural commodities; and (v) Management of catastrophic hurricane risks. Weekly assignments culminate in a major student project on weather risk management.
Note : Class size, frequency of offering, and evaluation methods will vary by location and instructor. For these details check the specific course syllabus.