Climate Risks

What Is This Course About?

Around the world, industries are grappling with the growing threat of climate risk, as extreme weather events, rising temperatures, and environmental disruptions impact business operations, infrastructure, and human livelihoods. The financial industry, in particular, is increasingly recognizing climate risk as a material financial risk that affects investment decisions, credit assessments, and overall risk management.

This course provides a comprehensive overview of climate risk and its implications for financial institutions, exploring key frameworks for assessing and managing these risks. You will gain insights into climate-related risk measurement approaches, stress testing techniques, and the role of decarbonization in banking.

What You’ll Learn

This course provides detailed coverage of climate risk, covering topics such as:

• The definition of climate risk and its implications for financial institutions
• The high-level process for assessing climate-related risk 
• The main approaches to climate-related risk assessment and measurement  
• The issue of decarbonization from the banking industry’s perspective
• The use of stress testing as a tool to help understand and quantify the financial impact of climate risk under various scenarios