More than 50% of US companies unprepared for weather risk: report

Results of a survey carried out by CME Group, the world's largest derivatives exchange, and weather risk management originator Storm Exchange, have found that 51% of senior finance and risk managers concede that they are under prepared to cope with weather risk.

The study, released today, found that 82% of senior finance and risk managers believe that global climate change will require changes to their future business models.

Of those surveyed, 42% said that their companies had attempted to quantify their exposure to weather, and only 10% had used weather options or futures to hedge that exposure.

Major findings of the study, which interviewed 205 senior finance and risk managers at companies in weather sensitive industries found that 59% of those asked