Premised on a complex articulation of financial mathematics, meterology etc. relatively new form of derivative contract, used to manage the risks of high risk, low-probability events like hurricanes or floods, used by firms to hedge agaisnt low-risk, high-probability events that can affect demand for their goods and services and hence their revenues, costs and income. Wine bars, restaurants, and theme parks, for example, can use weather derivatives to hedge the economic impact of a wetter-than-average summer