Extremes Analysis Identifying Risks and Opportunities for Companies and Regions

We show how extremes-related financial risks for businesses can be quantified and their evolution through time estimated. This provides important information for company-level resilience plans to reduce these risks. Additionally, applied to multiple companies in a region, this identifies opportunities for economic growth for businesses that provide goods and services needed to implement such resilience plans. The techniques used include multi-model ensemble statistics, specific climatological driving variables derived from these statistics, and econometric impact functions linking financial factors to the driving variables. Each of these elements is localized to company assets involving both physical and human capital, as well as their roles in company financial performance. We provide examples of the types of analysis that can be performed using these techniques.