MMF2034H: Climate Risk Management in Finance

Climate Change is already impacting the lives of millions of people and the operations of thousands of businesses around the world. Along with business, financial institutions are also feeling the first impact of climate change in their portfolios and balance sheets. Climate Risks are the source of financial risks and require special consideration and are receiving increasing attention from regulators around the globe. In this course we start by covering the key facts about Climate Change and its implications on people, business models and the portfolios of financial institutions around the world. We then review the most recent and relevant developments in climate risk, dealing both with the political arena and the business strategies of leading firms. After setting the scene we introduce the key concepts of Climate Risk Management and explore the main aspects of physical transitional climate risk drivers. We will then examine the extensive regulatory activities and guidelines and move into Climate Risk Measurement and Modelling. Here we elaborate on carbon measurement and trading, ECL calculations, and model risk management. As a next step we will be looking at Climate Risk Stress Testing and Scenario Analysis. We conclude the course by focusing on Climate Risk Disclosure and reporting initiatives and discuss their relevance for climate risk measurement and modelling.

0.50
St. George