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As such, data visualizations representing those risks can be highly effective assessment tools.
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Water and climate risk pose both acute and chronic risks to financial portfolios, particularly in agriculture. Whether considering the depth of groundwater, proximity to wildfire, or ambient temperature, the factors that directly and indirectly impact a harvest must be understood in their local context. The definition of financial risk rapidly is expanding to include water risk and climate risk – both of which are inherently geospatial. This geospatial approach is particularly well-suited for agricultural finance. For banks and Farm Credits with vast, diverse portfolios, the sheer amount of data could inhibit financial professionals from making efficient use of it.Īn interactive map, for example, can allow analysts to see macro trends across the entire portfolio while preserving the ability to zoom into a specific state, water district, or parcel to quickly ascertain where and how risk can manifest. As discussed earlier, visuals can help quickly make sense of cumbersome datasets.
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Quickly making sense of these changes in these complex systems will be essential to remain competitive.įor financial institutions specifically, data visualization can play a critical role in risk analysis. As the climate changes and humanity adapts, the ecological and regulatory factors influencing agriculture will be continually shifting. Ultimately, they can unlock novel insights and driven smarter decision-making.Īgriculture is set to face both great challenges and great opportunities in the 21st century. When used in the right contexts, each type of data visualization can enhance business intelligence. With the potential to manipulate several dynamic layers simultaneously to see how they interact over time and space, complex relationships can become intuitive. Interactive maps can display many, many more. Visual indicators can represent a 1-dimensional relationship while time-series expand it to 2-dimensions. This example may be more complex, but it also unlocks greater power. Understanding changes over time can help businesses successfully navigate the dynamic financial landscape. the price of water) analysts can easily identify trends and anomalous behavior. By plotting the change of a key indicator over time (e.g. These types of visuals are common, but they are also elegant and effective. Seeing several data points highlighted in red draws focus immediately to areas of greatest concern. Reading through a data table looking for figures that could indicate elevated risk takes time and attention. A color-coded flagging system can reveal critical characteristics of a dataset with just a glance. Not every data visualization needs to take up an entire screen. Representing different data fields by contrasting location, shape, size, and color, a well-designed visualization can translate a complicated mess of varying data fields into a story read effortlessly by the eyes.Įxamples of useful data visualizations include: In effect, data visualization allows those with data to find clarity in complexity and draw meaningful conclusions they can translate into action.ĭata visualizations transform the utility of a dataset by allowing finance professionals to process multiple interacting factors simultaneously. When a company is visualizing its own data, the presenter and viewer are one and the same. They are ubiquitous because communicating information visually can leave a stronger impression faster than a data table or paragraph ever could.īut data visualizations can do far more than fill a PowerPoint slide. Indeed, data visualizations are everywhere. This process helps the presenter communicate data in a way that’s easy for the viewer to interpret and draw conclusions.”Īt the most basic level, data visualization uses imagery to transform hidden information into accessible information. According to Harvard Business School: “Data visualization is the process of creating graphical representations of information.