What kind of decisions can be made based on a proxy or black-box financial impact model?

 

What is the value of such data?

 

The reliability of such data is limited because it’s not transparent, not explainable, and rarely decision-grade.

 

At WTN we stand for transparent financial impact modeling and it's always designed together with the end user of this data.

 

Our climate risk product is built for teams that need solid, auditable inputs for expected-loss and credit-risk modelling. Impact models must be meaningful and comprehensive, otherwise there’s no value.

 

To translate climate-risk metrics into financial impact, you will need:

• WTN's climate data data, and

• Asset-level information, including the facility type, asset value, and its importance for your business.

 

 

Step 1. For each asset type and economic activity, we help identify:

• the drivers of potential physical damage (e.g., flood depth, hurricane winds, wildfire), and 

• the drivers of business interruptions (e.g., downtime, shutdown, supply and logistics disruption).

Step 2. The climate risk metric is quantified using a classic frequency and severity framework.

Step 3. We combine hazard intensities with tailored vulnerability functions, exposure values, and valuation data (e.g., replacement cost, revenue at risk, margin), and incorporate company-specific inputs such as criticality, redundancies, insurance, retention, and recovery times. The result is an expected loss profile (and distribution) that links site-level climate hazards to financial outcomes across OPEX, CAPEX, and revenue.

 

Please feel free to schedule a call with our experts to discuss how we could support your projects with the impact modeling capabilities. 

 

If you have any questions on the integration of the climate risk data into credit risk and asset valuation financial models, please don’t hesitate to reach out at contact@weathertrade.net