Weather Patterns to Physical Risk Swaps

A Practitioner’s Guide to Flood Risk Management and Other Hazards

By David Kelly

Editor and Foreword by Johnny Mattimore

“The banking world's approach to physical risk is undergoing a fundamental transformation:

from a future consideration to an immediate driver of value,

from an unquantified threat to a tradable asset,

from a peripheral concern to a core determinant of banking stability.”

KEY STATISTICS

The book is the culmination of over 5 years of research

It has involved discussions with 100s of people at over 100 firms

It runs to circa 300 pages and 80,000 words

It has 11 chapters, best read sequentially, but can be read alone

There are 12 figures , 5 tables and 27 mathematical formulae

There are over 150 citations and references in the bibliography

There are over 180 terms defined in the glossary

AND a complete CDM for Property with circa 300 fields

TABLE OF CONTENTS

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Foreword

Prologue

Overview of Solution Evolution

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Chapter 1 - Physical Risk in Finance

Chapter 2 - Data Framework

Chapter 3 - Weather Prediction

Chapter 4 - Hydrological Modelling

Chapter 5 - Flood Risk Assessment

Chapter 6 - Impact Quantification

Chapter 7 - Insurance Risk Assessment

Chapter 8 - Mortgage Risk Assessment

Chapter 9 - Physical Risk Swaps

Chapter 10 - Model Risk Governance

Chapter 11 - The Cutting-Edge of the Future Developments

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Glossary of Terms

Appendix A - Property CDM

Bibliography

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