A big storm looms on the horizon, threatening punishing winds and flooding rains. Tornadoes are possible. Residents prepare quickly, sealing their windows and moving their belongings to higher ground. The storm spins furiously off in the distance, yet no one can feel it in the preparation area. At least a day remains before it arrives.

How does everyone know that the big storm is approaching? Simple: they watched TV, listened to the radio, or checked a weather site on the Internet. They received an accurate forecast, and they acted upon it.

Just as you use forecasting to plan for future weather events, smart business owners and managers rely heavily on forecasting to predict risk and minimize its impact in their companies.