Risk
Financial Institutions Should Wise Up to Climate-Related Sovereign Risks
Climate threats to sovereigns’ creditworthiness are on the rise. Are financial institutions on top of their exposures? Pakistan. China. Kenya. Each country is grappling with…
Rabobank’s woes herald a new phase in climate transition risk management
The creditworthiness of high transition risk borrowers may degrade as more ambitious climate policies are enacted Rabobank is the new poster child for climate transition…
Why climate models struggle with acute physical risks
Climate models have a major blind spot: they can’t see extreme weather-related risks. This is a big problem for financial institutions, since these kinds of…
Climate Change and Banks: How Banks are Building Climate Resilience
July 12th, 2022 Banks are under increasing pressure from investors, activists, and supervisors to develop climate risk management capabilities. They are also more focused than…
Staying Current with Climate Change, hosted by RMA
June 6th, 2022 This session covered key trends in the climate change conversation. Panelists provided an overview of the climate risk management landscape and discussed…
Regulatory orthodoxy and the hunt for climate risk differentials
Prudential frameworks are ill-suited to weighing the relative risks of green and non-green assets Bankers are floundering in their search for climate risk differentials —…
Reflections on the BoE’s climate stress test
The Climate Biennial Exploratory Scenario exercise is over. But the debate over what the results mean for banks, supervisors, and the UK financial system has…
Here’s how to run asset-level climate physical risk assessments
A recent academic paper proposes a five-step methodology for measuring how climate impacts to physical assets can inflict losses on financial institutions Climate physical risks…
Why the EU’s systemic buffer isn’t fit to tackle bank climate risks
European financial authorities are talking up the potential of the systemic risk buffer to capture physical and transition risks, but the tool has its shortcomings…
Managing Climate Risks for Credit Unions
As climate change continues to impact the world, there is a growing recognition that physical and transition risks threaten credit unions and the wider financial…