Climate Risk Management

Agenda Program Online
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K dispozici výhradně jako online školení
Cena online školení
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Attend this online training course and learn about:

Climate Risk Regulatory and Supervisory Expectations
Climate Risk Integration in Risk Appetite Framework
Climate Risk in Internal Capital Adequacy Assessment Process (ICAAP)
Climate Risk in Policies, Limits and Risk Monitoring
Climate Risk Disclosures
Physical Risk Assessment Methodologies
Transition Risk Assessment Methodologies
Supervisory Climate Risk Stress Tests
Climate change and our impact on nature are the biggest challenges of our times. The latest Intergovernmental Panel on Climate Change (IPCC) report was called a code red for humanity. Recognizing the emergency and the threat to financial stability, more than 100 supervisors and regulators, including the European Central Bank (ECB) and the European Banking Authority (EBA) gathered in the Network for the Greening of the Financial System (NGFS) to promote embedding climate & environmental factors into banks' risk management practices and support capacity building. A comprehensive set of EU climate & environmental regulatory guidelines and supervisory expectations were issued in 2019 and 2020. Since then, the depth and speed of ECB climate-related reviews has intensified through detailed surveys, top-down and bottom-up pilot climate stress testing. The direction is clear: climate will soon result in Pillar 2 add-ons and will be integrated in Pillar 1. Banks need to embed climate change in their risk management framework and practices to avoid additional capital charges.

The objective of this three half-day online course is to give the participants a deeper understanding of how climate-related and environmental risks should be embedded into bank’s risk management framework. Subject matter experts will focus on the European Central Bank’s (ECB) “Guide on Climate-related and Environmental Risks” and the European Banking Authority’s (EBA) recommendations on risk management and supervision.

Participants will also learn about best practices to integrate climate risk into governance, strategy, risk management and disclosure. The course also covers climate scenario analysis and stress testing with concrete examples of the analysis performed by the ECB. Different approaches used to assess physical risk and transition risk by banks will also be presented, including data needs.

All the sessions include practical case studies and examples to make the course interactive.

The course is intended particularly for:
  • Risk managers
  • Business units: CIB, Retail banking, Specialised Lending
  • Corporate Social Responsibility
  • Finance teams, particularly those in charge of funding, investors relations, reporting
  • Regulatory reporting teams

Program semináře: Climate Risk Management

Seminář probíhá podle středoevropského času (CET).

09.00 - 09.10 Welcome

09.10 - 10.40

Introduction to Climate Risk

  • IPCC Sixth Report- Climate Emergency
  • Types of Climate Risks: Physical and Transition Risks
  • Transmission Channels to Prudential Risks

Overview of Climate Risk Regulatory and Supervisory Expectations

  • European Commission “Action Plan on Financing Sustainable Growth”
  • ECB Guide on Climate-related and Environmental Risks
    • Business Models and Strategy
    • Governance and Risk Appetite
    • Risk Management
    • Disclosures
  • EBA’s Climate Risk Management Final Report

10:40 - 11:00 Break

11:00 - 12:30

International Perspective

  • BIS “Green Swans: Financial Stability and Climate Risks” Why Banks Supervisors Mandates Include Climate Change
  • NGFS: the Network for the Greening of the Financial System

Case study: BNPP TCFD Report

09.00 - 10.40 Risk Management Framework

  • Supervisory Expectations Related to Risk Management
    • Risk Management Framework
    • Credit Risk Management
    • Operational Risk Management
    • Market Risk Management
    • Scenario Analysis and Stress Testing
    • Liquidity Risk Management
  • ECB Banks’ Self-assessment 2021
    • Climate Risk Integration in Risk Appetite Framework (RAF)
    • Climate Risk in Internal Capital Adequacy Assessment Process (ICAAP)
    • Climate Risk in Policies And Limits (Credit, Market, Operational Risk)
    • Climate Risk Integration in Risk Monitoring
    • Assessment of Climate Risk Disclosure

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

Case Study: Standard Chartered TCFD Report

09.00 - 10.40

Physical Risk Assessment Methodologies

  • Heatmapping and Scoring Practical Examples
  • Physical Risk Analytics- An Illustration
  • Physical Risk Assessment – Benchmark of Third-party Providers

Transition Risk Assessment Methodologies

  • Carbon Footprint and Forward-looking Decarbonisation Targets – How to Assess Net Zero Alignment
  • PACTA – Paris Agreement Capital Transition Assessment –Example of The Automotive Sector
  • Portfolio Temperature Alignment / Implied Temperature Rise (ITR) Limitations

10:40 - 11:00 Break

11:00 - 12:30 Supervisory Stress Testing

  • NGFS Climate Scenarios and How They Compare to IPCC and the International Energy Agency (IEA) Scenarios
  • ECB 2021 Exploratory Climate Risks Stress Test – Overview of Data, Scenarios, Methodology and Results
  • ECB 2022 Bottom-up Exercise – Methodology and Submission Templates Description
  • Lessons Learned From ACPR/ EBA Pilot Exercises and Their Operational Impact

Summary and Conclusions of the Seminar

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