Accepting responsibility

Weather risk

Corporate governance issues now keep senior management awake at night. And because such issues are at the forefront of every investor’s and regulator’s mind, companies now realise that they cannot simply “blame it on the weather.”

“ New corporate governance regulations requiring companies to identify, quantify and manage all forms of risk are fuelling rapid growth in weather derivatives usage,” says Alex Schippers, ABN Amro’s global head of insurance and weather derivatives.