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October 5 - 7, 2022 (3 half-day study sessions)

Climate Risk Management

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Online
Available exclusively as online training
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Price of online training
€ 825
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Language
English
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Evaluation
New
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Attend this online training course and learn about:

Types of Climate Risks: Physical and Transition Risks
International Perspective and Initiatives
Climate Risk Regulatory and Supervisory Expectations
Sustainability Disclosures and Risk Management
Integration with Business as Usual Risk Management
Climate Risk Data and Modelling
Scenario Analysis and Supervisory Climate Risk Stress Testing
Optimal Net Zero Strategy for Loan and Investment portfolios
Examples of Good Practices
The attention to climate change and climate risk gained significant momentum and managed to climb up the agendas of leading global policymakers, regulators, corporates and financial institutions. Number of banks and investors are already feeling the first climate change losses in their portfolios and are struggling to keep up the paste with the intensity of regulatory climate activities. In parallel, the financial industry is gearing up for yet another climate related significant task – the decarbonization of their portfolios- in order to reach carbon net-zero portfolio by 2050. Climate Risks are source of financial risks, they require special considerations and if they are to be managed effectively and efficiently they need to be addressed in close integration with bank’s business as usual activities.

The objective of this one and half days online course is to give the participants a deeper understanding of how climate-related and environmental risks impact financial institutions and how should they be embedded into bank’s risk management framework.

Participants will gain insights into emerging regulatory standards, best practices for climate change risk management and have the opportunity to enhance their ability to leverage quantitative metrics and analytics to effectively evaluate climate change risks in loan and investment portfolios under different climate scenarios and strategies. Throughout the course we will cover the latest developments in the industry, regulations and technology relevant for effective and efficient Climate Risk Management.
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PDF brochure with all details about the Climate Risk Management seminar is available on request.

Program of the seminar: Climate Risk Management

The seminar timetable follows Central European Time (CET).

09.00 - 09.10 Welcome

09.10 - 10.40

Introduction to Climate Risk

  • IPCC Sixth Report - Climate Emergency
    • SSPs scenarios
    • C02/ Temperature / Sea levels / Heat waves forecasts
    • Why Net Zero 2050
    • IPCC Atlas tool demonstration
  • Climate Extreme events and losses
  • WEF Global Risk report – top RISKS
  • Types of Climate Risks: Physical and Transition Risks
  • Transmission Channels to Prudential Risks
  • Climate risk vs Sustainability vs ESG
  • Paris Agreement
    • 1-2 degrees
    • Net zero 2050
    • National contributions and COPs
  • European Commission’s “ Action Plan on Financing Sustainable Growth”
    • Green deal
    • Carbon strategy
    • Taxonomy

Short illustrational 3-5 min video

10:40 - 11:00 Break

11:00 - 12:30

International Perspective and Initiatives

  • BIS “Green Swans: Financial Stability and Climate Risks” Why Banks Supervisors Mandates Include Climate Change, Sound principles for Climate risk Management
  • NGFS: the Network for the Greening of the Financial System
  • Portfolio Carbon Accounting
    • PCAF
    • Greenhouse gas protocol
    • Science Based Target initiative
  • GFANZ / Global banking alliance for net Zero
    • Targets, scope, timelines
  • TCFD / Risk Management / Scenario Analysis
    • Governance, Strategy, risk management, metrics
Short illustrational 3-5 min video

09.00 - 10.40

Risk Management Framework

  • Supervisory Expectations Related to Risk Management (ECB)
    • Business Model & Strategy
    • Governance
    • Risk Management Framework
    • Credit Risk Management
    • Operational Risk Management
    • Market Risk Management
    • Scenario Analysis and Stress Testing
    • Liquidity Risk Management
    • Model Risk Management
    • Loan Underwriting
    • ECB Banks’ Self-assessment 2021
  • EBA’s climate risk report
  • Sustainability Disclosures and Risk Management
    • Pillar 3
    • CSRD
    • SFRD
    • TCFD
    • IFRS
  • Integration with Business as Usual Risk Management
  • Exposure of European Financial Sector to Climate Risk (ECB 2021 Exploratory Climate Risks Stress Test methodology) – “examples what we are trying to achieve and what are things to look for”

Short illustrational 3-5 min video

10:40 - 11:00 Break

11:00 - 12:30 Data and Modelling

Climate Risk Data

  • Data challenges
  • External data, Unstructured data, Data pooling
  • NGFS Bridging the Data Gap

Physical Risk Assessment Methodologies

  • Understanding risk drivers
  • Heatmapping and Scoring Practical Examples
  • Physical Risk Analytics- An Illustration
  • ECB 2021 Exploratory Climate Risks Stress Test methodology- Physical Risk
  • Physical Risk Assessment – Benchmark of Third-party Providers

Transition Risk Assessment Methodologies

  • Understanding Carbon Footprint and other risk drivers
  • Practical Methodological examples
  • ECB 2021 Exploratory Climate Risks Stress Test methodology- Transition Risk
  • PACTA – Paris Agreement Capital Transition Assessment –Example of The Automotive Sector
  • Portfolio Temperature Alignment / Implied Temperature Rise (ITR) Limitations

Integrating Transition Risk and Physical risk

Integration with of Climate Risk with other Financial Risks

Short illustrational 3-5 min video

09.00 - 10.40

Scenario Analysis, Supervisory Stress Testing and Net Zero

  • Vanilla stress testing vs Climate Stress Testing vs Net Zero Strategy for Loan and Investment portfolios
  • NGFS Climate Scenarios and How They Compare to IPCC and the International Energy Agency (IEA) Scenarios
  • NGFS scenario explorer – demonstration
  • Process and Methodology considerations
  • ECB 2022 Bottom-up Exercise – Methodology and Submission Templates Description
  • BOE 2022 Stress Test – methodology and framework

5 min Climate Stress Testing demo video

10:40 - 11:00 Break

11:00 - 12:30

Examples of Good Practices

  • Climate Risk in Governance
  • Climate Risk in Strategy
  • Climate Risk Management
  • Climate Risk Disclosures

UNEP FI pilot projects & Best practices

TCFD good climate risk reporting practices

Climate Financial Risk Forum

Climate Risk Annual reports – ING / Standard chartered

Summary and Conclusions of the Seminar

Video Invitation and Registration

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Video

Video Invitation

An invitation from the seminar lecturer.

Video Invitation
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Online

Online training seminar

The seminar will be held as an online training.

Online
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Registration

Registration Deadline

September 21, 2022

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