The Research On Weather Risk Management Of Our Country's Enterprises

Weather risk is a systematic, objective, high frequency, non-catastrophic pure risks. With the further deepening of market-oriented economy,the weather risk would have even greater impact on our economy, so Chinese Corporations are demanding more and more from weather risk management. Therefore, such measures taken by corporations including weather risk retention and weather risk control can no longer meet the requirements of modern weather risk management. Due to the absence of weather risk management system, this article is written with the background of weather risk management system and weather derivatives as the subjective of this study with reference to advanced experience in international weather derivatives. Weather risk management system is built in this article, as well as weather risk derivatives which are suitable to Chinese economy are proposed.Firstly,this paper applies creatively existing risk management systems to the weather risk management of Chinese enterprises.It constructs weather risk management system of enterprises by means of weather risk identification, measurement and evaluation of the weather risk, weather risk management options and the performance evaluation of weather risk management.Secondly, this paper refers to international advanced and mature experience and combines the national situation,develops weather derivatives that are fit for Chinese national conditions from the follow aspects including the choice of weather index and index city, product type, ontract specifications, contract period,the form and place of transaction and the regulation of weather derivatives market.Therefore, on the one hand,this paper improved the management system of weather risk, on the other hand,it solves the absence of weather risk management instruments.The construction of weather risk management system and. the development of weather derivatives have very important significance to the weather risk management of our enterprise and the development of finance market.