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STEM Commons · Mathematics, statistics and data

Forecasting and time-series analysis

Forecasting and time-series analysis predict future values of variables from past observations and explanatory information. They support early warning and planning across hazards, markets and health. Climate and Hazards stewards this page for the Nexus Consortium.

01In brief

The short answer.

Forecasting and time-series analysis predict future values of variables from past observations and explanatory information. Forecasts trigger early action and anticipatory finance before shocks materialise. In the Nexus Consortium, Climate and Hazards stewards its canonical page, and 6 other platforms apply it, including Water Nexus and Food Nexus.

02Geography

Systemic exposure in Oceania and the Pacific.

Where people and networks concentrate, the exposure through which shocks travel between systems, shown for Oceania and the Pacific as an example geography for this subject.

Where people and networks concentrate, the exposure through which shocks travel between systems.Indicator derived from Natural Earth at map scale; a screening view, not an assessment.
GCRI · institution · fieldDESIGN FIGURE
03The method

What forecasting and time-series analysis covers.

  1. 01

    Core methods

    autoregressive models; state space models; ensemble forecasting; machine learning forecasting; nowcasting; forecast combination.

  2. 02

    Data and instruments

    historical time series; real-time monitoring feeds; numerical model outputs; economic indicators; surveys of expectations.

  3. 03

    Validation

    Forecasts are evaluated out of sample with proper scoring rules and reliability diagrams. Rolling-origin evaluation tests performance over time.

  4. 04

    Limits

    Structural breaks and regime changes undermine models trained on the past. Forecast skill typically declines rapidly with lead time.

  5. 05

    Use in risk decisions

    Forecasts trigger early action and anticipatory finance before shocks materialise. Probabilistic forecasts allow decisions to account for uncertainty across connected systems.

04Reference practice

Forecasting practice is verified against outcomes.

ReferenceWhat it sets
WMO forecast verification guidanceSkill scores and verification
Impact-based forecasting (WMO)Forecasts of consequences, not only hazards
Early Warnings for AllForecasting as a warning pillar
05In systemic risk work

From hazard forecast to action.

Forecasts become useful for risk when tied to thresholds that trigger action. Impact-based forecasting and forecast-based financing link probabilistic forecasts to pre-agreed actions. Verification tells whether the forecasts are reliable enough for that use.

  • Verify forecasts with proper scoring rules.
  • Calibrate thresholds to false-alarm tolerance.
  • Communicate probabilities clearly.
  • Applications on Climate and Hazards and Disaster Resilience and Recovery.
07Stewardship

Who maintains this page.

Climate and Hazards stewards forecasting and time-series analysis: it keeps this description current and reviews how the method is applied across the platforms.

08Key terms

Terms used on this page.

Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.

TermDefinition
Hit rateThe share of observed events that were correctly forecast in advance.
Impact-based forecastA forecast of the expected effects of a hazard on people and assets, not only the hazard itself.
Lead timeThe interval between the issue of a forecast and the event it predicts, which sets how much time there is to act.
Ensemble forecastA set of forecasts run from slightly different starting conditions or models, whose spread expresses the forecast's uncertainty.
09Sources

Where this page's references lead.

The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.

11Questions

Questions and answers.

Why does one institution host every method page?
GCRI hosts the STEM Commons so that each method has one canonical description. Platforms link to it rather than repeat it, which keeps definitions consistent.
How do I suggest a correction to a method page?
Write to integrity@therisk.global with the passage and the reason.
The Global Centre for Risk and Innovation

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The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.

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