Financial services face both physical and transitional risks regarding climate change. No matter what you believe to be true about climate science, the reality is that your bank must address it.
Diva-Thane European Call Girls Number-9833754194-Diva Busty Professional Call...
How will climate change affect financial services?
1. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
1
JOIN. ENGAGE. LEAD.
HOW WILL CLIMATE CHANGE
AFFECT YOUR FINANCIAL
INSTITUTION?
From The RMA Journal
2. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
2
JOIN. ENGAGE. LEAD.
WHAT IS YOUR
FINANCIAL INSTITUTION
DOING ABOUT CLIMATE
CHANGE?
Given the advancing global
effort to face what is very likely
the defining issue of the century,
expect to hear that question
more and more.
3. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
3
JOIN. ENGAGE. LEAD.
WHAT IS YOUR FINANCIAL INSTITUTION
DOING ABOUT CLIMATE CHANGE? (CONT.)
No matter what you believe to be true about climate
science, the reality is that your bank must address it.
5. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
5
JOIN. ENGAGE. LEAD.
TRANSITION RISKS
Entire industries, as
nations try to cut back
dramatically on CO2
emissions by:
• Switching to electric
cars.
• Encouraging solar
power generation.
• And reducing air travel
and beef consumption.
The impact on
regulations.
Consumer
preferences.
Transition risks include:
6. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
6
JOIN. ENGAGE. LEAD.
THESE RISKS RAISE SEVERAL QUESTIONS
Could an event or
breakthrough cause a
precipitous drop in the
value of one of your
borrower companies
tied to the oil or
automotive industry?
Have you stress tested
your portfolio to
determine how it would
withstand such a
shock?
And what if your bank
were required to report
on its exposure to
climate-related risk?
7. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
7
JOIN. ENGAGE. LEAD.
CLIMATE CHANGE-RELATED REGULATIONS
Regulators in
Australia, France,
the Netherlands,
and the United
Kingdom
are all considering
climate-change-
related regulations
for banks.
8. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
8
JOIN. ENGAGE. LEAD.
Meanwhile, the Task Force on
Climate-Related Financial
Disclosures of the Financial
Stability Board is recommending
that companies make their
climate-related risks known to
lenders and other stakeholders.
CLIMATE CHANGE-RELATED DISCLOSURES
9. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
9
JOIN. ENGAGE. LEAD.
REPUTATION: FOSSIL FUEL PROJECTS
There is also
your bank’s
reputation
to consider.
To wit:
Each year, the “Banking on Climate Change: Fossil Fuel
Finance Report Card,” released by Bank Track, the
Rainforest Action Network, the Sierra Club, and Oil
Change International, ranks banks by their relationships
with fossil fuel projects.
Source: “Banking on Climate Change: Fossil Fuel Finance Report Card 2019.”
10. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
10
JOIN. ENGAGE. LEAD.
RISK APPETITE
As with all risks, the
idea is not to avoid
them at all costs, but
to have a considered
and reasonable risk
appetite for your
organization—and to
optimize the
opportunities.
11. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
11
JOIN. ENGAGE. LEAD.
RISK APPETITE (CONT.)
Just as there are risks and
opportunities with lending to
traditional energy providers,
there are risks and opportunities
in lending to projects that are a
reaction to climate change.
12. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
12
JOIN. ENGAGE. LEAD.
You need to be doing something about the
potential impacts of climate change.
THE POINT
13. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
13
JOIN. ENGAGE. LEAD.
LEARN MORE
The RMA Journal is the award-winning magazine published
by The Risk Management Association:
• It is the only professional journal written by risk practitioners for risk
practitioners.
• Each article is peer reviewed by our Editorial Advisory Board prior to
publication.
• Published 10 times a year, The RMA Journal offers practical advice
on managing risk across the enterprise.
Learn more at:
https://www.rmahq.org/thermajournal/
Become an RMA member and get The RMA Journal free.
Visit https://www.rmahq.org/membership-types/
14. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Affairs · Securities Lending
14
JOIN. ENGAGE. LEAD.
SHARE THIS PRESENTATION
Visit https://www.rmahq.org for information on risk management.
RMA is a member-driven professional association whose sole
purpose is to advance sound risk principles in the financial services
industry.
RMA helps its members use sound risk principles to improve
institutional performance and financial stability, and enhance the risk
competency of individuals through information, education, peer
sharing, and networking.
Become a member today
https://www.rmahq.org/membership-types/