The environment — global warming (soon to be global “boiling”), climate change or the weather — is changing, producing more catastrophic events and driving a potentially record uptick in investments in weather risk intelligence solutions.
Moreover, as economies wrestle with adopting environmental, social and governance policies, globalists argue that central planners “must mandate climate risk disclosure and recommend robust and standardized frameworks to guide the necessary solution developments.”
Whether driven by the need to mitigate the risk of weather disasters or by green ideology, organizations are turning to advanced data processes and analytics to understand the dangers of extreme weather, prepare for them and inform decision-makers on actions to take before and during a disruption. As a result, specialists with such knowledge and skills, like graduates of Millersville University’s online Master of Science in Integrated Scientific Applications (MSISA) – Weather Intelligence and Risk Management program, are in greater demand than ever.
“With weather intelligence, you see the predictive impact of weather and also receive recommendations about what to do and when before it’s too late,” according to Tomorrow.io, a weather insights resource.
How Can Businesses Use Weather Intelligence to Manage Risk?
Risk management comprises processes that identify, assess and control the influence of disruptive events on a company’s operations, assets and earnings. Climate intelligence early adopters leverage data-driven, hyperlocal predictions and recommendations to minimize the impacts of severe weather, which is increasing worldwide at huge and growing costs.
In 2022, according to the National Oceanic and Atmospheric Administration (NOAA), there were 18 floods, hail storms, hurricanes, storms, tornados, wildfires and deep freezes — each of which resulted in more than $1 billion in damages. Globally, 42 weather catastrophes resulted in $360 billion in damages.
“But when an organization can anticipate weather threats before they happen, they gain an edge over competitors,” IBM advises, adding that predictive analytics can protect against loss while maximizing revenue by informing sustainable resource use.
Other ways weather intelligence can help manage risk include the following:
Emergency Planning
Weather intelligence enables risk managers to build mitigation plans starting with early warning systems that predict threats with pinpoint precision. It also provides recommendations on how long to continue operations, when to stop or limit them, when to order shelter-in-place or evacuations and what routes to take.
Predictive analytics of historical weather patterns and events also supports identifying areas prone to certain types of weather-related emergencies, enabling more precise risk assessment and preparedness. Analytics also give policy-makers and planners insights to develop contingency plans for multiple scenarios.
Still, despite those advantages, businesses are slow to adopt climate intelligence as a risk management tool. “Weather analytics is the most underused, yet readily available, resource that businesses can use today to prepare for the future,” Forbes argues.
Weather Risk Management
Data-supported, detailed emergency response policies that include predictive recommendations and contingencies enable business leaders to make more intelligent decisions transferring the risk. An emerging solution — parametric insurance — protects businesses based on the probability of a destructive event.
Businesses also use weather intelligence to modify operations and services, which reduces exposure to weather and climate hazards, and develop resilience strategies for infrastructure and engineering projects.
Funding is pouring into weather-intelligence solutions providers as investors see profits as the rapidly expanding Internet of Things provides billions of data points for artificial intelligence to organize and analyze. The market was valued at over $9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.5% through 2027.
Prepare for a Career in the Fast-Growing Field of Weather Intelligence
Millersville University’s online MSISA – Weather Intelligence and Risk Management program provides graduates with cross-disciplinary science, analytics and business skills.
With those insights, graduates gain the expertise to quantify uncertainty and manage weather risk within business enterprises and step into roles in diverse careers such as weather risk analyst, weather-related insurance management and even roles in commodities and energy trading.
Learn more about Millersville University’s online MSISA – Weather Intelligence and Risk Management program.
