Finance Tools
Climate Risk Financial Impact Calculator
Estimate the potential annual financial impact of climate risk using revenue exposure, probability of disruption, and expected loss severity.
Estimate the expected annual financial loss from climate risk using a simple exposure model: exposed revenue × probability of disruption × loss severity.
Portion of revenue that is meaningfully exposed (sites, suppliers, logistics, demand).
Estimated chance of a climate-related disruption occurring within a year.
Percentage of exposed revenue lost if the disruption event happens.
Model — Expected annual loss = Exposed revenue × Probability × Severity.
Scenario Loss (if event occurs): $9,000,000
Expected Annual Loss: $1,080,000
Inputs — Revenue: $50,000,000, Probability: 12.00%, Severity: 18.00%
How to use this climate risk financial impact calculator
- Enter annual revenue exposed to climate risk.
- Enter probability of disruption per year.
- Enter expected loss severity if disruption happens.
- Review expected annual loss and scenario loss.
Example
A business has $50,000,000 in annual revenue exposed to climate risk, with a 12% chance of disruption each year and 18% loss severity if it occurs.
- Exposed revenue: $50,000,000
- Probability of disruption: 12%
- Loss severity: 18%
- Scenario loss (if event occurs): $9,000,000
- Expected annual loss: $1,080,000 (50,000,000 × 0.12 × 0.18)
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