Enterprise Risk Management solutions for global businesses

Meteo Risk Response: A smart approach to manage weather related exposures.
An integrated new risk management approach for weather related (flood and storm) exposures to optimize the risk portfolio in a dynamic way has been developed and is offered by MRR. The developed proposition is a joint effort of three specialist companies: a leading weather service provider, a risk management expert team and IT solution partner.

Economic and human losses due to severe weather conditions are increasing and trending for the worse. This rise, in combination with the increasing complexity of global supply chains is forcing companies to respond. Moreover, an additional public demand for corporate responsibility and transparency is adding to the pressure.
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Meteo Risk Response (MMR) provides a strategic competitive advantage by delivering deeper insights into the effect of severe weather exposures on large corporate organizations. A risk assessment at the premises leads to related loss scenarios, such as rising water levels, flash floods or storm surges, etc. Based on historical water level and flood loss data, a probability distribution function of the loss amount due to property damages and business interruption is developed which is used for the estimation of earnings variability due to flood risk exposures. The hydrological modeling of the current and forecasted water level is based on precipitation data from local weather stations and the region’s topology. The forecast of the water level gives early warnings to the corporate risk manager about the current loss estimates and forecasts of earnings at risk at every company location.

Benefits of the approach include:
Most advanced weather stations with hourly data streaming and forecasting.
A dynamic risk management software in a modern web-based solution including risk analytics, incident analysis, quantification of earnings at risk, risk indicator monitoring, alarm notification, and emergency response plan activation, and various modeling and reporting features.
Loss forecasting and risk treatment of natural hazards by elimination or reduction of probabilities and/or severity of losses.
Improved budget planning as well as optimization of reserves and insurance solutions regarding natural catastrophe impacts.
Improved reputation among investors and stakeholders for pro-active risk management.
Supports the commitment to corporate social responsibility and climate change impacts.
Competitive advantage through preparedness and reduced loss potentials.