Formación y Consultoría

CLIMATE RISK

 

Module 1: Introduction to climate change and financial risk management

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• Summary of climate change risk

• How does climate change translate into financial risk?

• Exposure to weather-related risks

  • physical risks

    • Climate change as a physical and meteorological phenomenon and its impacts on natural and artificial systems

    • Basic science of climate change

    • the latest scientific knowledge compiled by the Intergovernmental Panel on Climate Change (IPCC).

  • transition risks

    • The economic transition with low carbon emissions, its risks and impacts

    • The social response to climate change as a political, economic and technological response

    • the international climate change regime, and current debates and challenges, such as the "Tragedy on the horizon"

    • main policy responses to climate change at the national level (for example, emissions trading

    • introduction to the risks and opportunities that climate change implies for the financial sector (mitigation and adaptation)

    • introduction to transition risks and opportunities in the context of the new Task Force on Climate Related Financial Disclosure (TCFD)

• Risks of climate change risk

• Understand the performance of carbon as an asset class.

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Module 2: Emerging regulatory expectations

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• Background to regulatory initiatives: Paris Agreement and other frameworks

• Overview of current regulatory standards (for example, PRA, ECB, HKMA, MAS, etc.)

• Role of NGFS and standard setters

• Risk Management Expectations

• Challenges and opportunities Disclosure, reporting and governance frameworks

• Growing pressure for financial disclosure

• Strong ownership and oversight of climate change risk management practices

• Task Force on Climate-related Financial Disclosures TCFD

  • Understand the guiding principles of TCFD

  • Develop a comprehensive TCFD program

  • implement recommendations

• Basel

  • The role of climate-related financial risks in the regulatory and supervisory framework

  • Research related to the measurement of climate-related financial risks

  • Measures to raise stakeholder awareness of climate-related financial risks

  • Bank approaches to managing and disclosing weather-related financial risks

  • The supervisory treatment of weather-related financial risks

  • Other initiatives that are underway among the respondents.

• IFRS

  • ​Making materiality judgments

  • Apply Materiality Judgments to Weather-Related and Other Emerging Risks

  • Financial reporting considerations

  • Disclosure of weather-related risks and other emerging risks

  • Management comment: provides context to the financial statements

  • Abstract: Materiality judgments must satisfy the information needs of investors.

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Module 3: ESG and climate change risk

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• Environmental, social and corporate governance (ESG) refers to the three central factors in measuring the sustainability and social impact of an investment in a company or business.

• Current trends in the ESG market

• Analysis of ESG ratings

• Adapt investment strategies to the effects of climate change

  • Build a portfolio that reflects the transition to a low carbon economy

  • Integrating the carbon transition and physical climate risk

• Distinguish the risks, challenges and opportunities associated with ESG

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Module 4: Climate Risk Management

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• Scenario Analysis and Stress Testing

• What is the difference between "normal" stress tests and climate change risk stress tests?

  • Bank of England stress test

• Summary of scenario analysis in the context of climate change risk

• Data management to assess the risks of climate change.

• Benefits and Issues of performing scenario analysis

• Climate change risk methodologies

• How to model the risk of climate change?

• Using and evaluating data

• Understand modeling methodologies

  • temperature alignment

  • Decarbonization Pact Methodology

  • Climate change applied to credit risk

• Challenges in climate change risk modeling

• Incorporation of climate change risk strategies

• Integrate climate change risk management into financial risk management frameworks

• Adoption of KPI, KRI to monitor climate risks.

• Use of self-assessments

• Improvement and management of business commitment

• How to successfully integrate climate risk strategies into the business.

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Module 5: Credit risk transition risk

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• Scenario analysis to assess the transition risk component of a portfolio's credit risk

• Introduction: preparing banks for the low carbon transition

  • A growing need for climate scenario analysis

  • The challenge for banks

  • Take advantage of and integrate the resources available to banks

• An integrated approach to transition risk assessment Transition scenarios

  • Understand transition scenarios and their sources

  • Using scenarios for transition risk assessment

  • Closing the gap between climate scenarios and financial risk assessment

• Borrower Level Calibration

• Portfolio Impact Assessment

  • Link expected loss to transition impacts on portfolios

  • Assessment of probability of default (PD)

  • Loss Given Default (LGD) Assessment

• Putting the Approach to Work: Lessons Learned from Banking Pilots

• Piloting the transition risk methodology

• Definition of sectors and segments

• Evaluate the relative sensitivities of the segments

• Determination of calibration points at the borrower level Case studies and results

• The pilot transition scenario

• pilot results

• Transition Opportunities: Exploring an Institutional Strategy

• evaluating the market

• Grounding Opportunity Assessments in Scenario Analysis

• Assessing the market attractiveness of the segment

• Identification of banking capabilities

• Discovering the opportunities with the greatest potential

• Future Directions: Developing the Next Generation of Transition Risk Analysis

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Module 6: Physical risks and opportunities

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• An Integrated Approach to Physical Risk Assessment

• Borrower Characteristics

• Insurance as a risk mitigator due to extreme climatic and meteorological events

• climate change scenarios

• Impacts of climate change on the probability of default PD

  • Evaluation of changes in the productivity of the sector

  • Adjustment of income statement metrics

  • Determination of changes in the probability of default

• Real Estate: Climate Change Impacts on LTV Loan-to-Value

  • Estimation of the impacts of extreme events on the value of properties.

  • Determining Changes in LTV Loan-to-Value Ratio

• Physical Opportunities: Exploring an Institutional Strategy

• Taxonomy of opportunities and data sources

• evaluating the market

• Evaluation of the financing demand of the sector

• Sector evaluation

• Assess the institutional capacity and market positioning of a bank

• evaluate opportunities

• Future Directions: Towards the Next Generation of Physical Risk and Opportunity Analysis

• Develop internal analytics and capabilities within banks

• Strengthening the research base

• Develop analytical platforms and tools to support physical assessments of risks and opportunities.

• Improve information flows on physical risk and adaptation between banks and borrowers

• Improve dialogue with governments and insurers

 

Module 7: Decarbonization and disruption

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• The oil and gas sector

  • market trends

  • The potential impacts of a disruptive transition

  • Ensure an orderly transition

  • Analysis of climatic scenarios of the messy transition

• Utilities and Power Generation Sector

  • market trends

  • The potential impacts of a disruptive transition

  • Ensure an orderly transition

  • Analysis of climatic scenarios of the messy transition

• Metals and mining sector (industrial)

  • market trends

  • The potential impacts of a disruptive transition

  • Ensure an orderly transition

  • Analysis of climatic scenarios of the messy transition

• Agricultural sector

  • market trends

  • The potential impacts of a disruptive transition

  • Ensure an orderly transition

  • Analysis of climatic scenarios of the messy transition

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Module 8: Climate transition scenarios

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• Analysis of climate scenarios in the financial sector

  • Analysis of scenarios before and after the global financial crisis

  • Climate scenario analysis

• Climate scenarios

  • Introduction to Integrated Assessment Models (IAM)

  • Where do AMIs come from?

  • Advantages and Limitations of IAMs

• Key assumptions

  • What do the IAM scenarios show?

  • What socioeconomic and policy assumptions do IAMs make?

  • What technological assumptions do IAMs make?

  • Elimination and overshoot of carbon dioxide

  • Many routes up to 15 ° C

• Sectoral perspectives of climate scenarios

  • Regional, sectoral and technological coverage in IAM

  • Future energy mix at IAM

  • Understand sector-specific impacts

• Bank assessments of climate scenarios (case studies)

  • Summary of UNEP FI transition risk approach used for bank case studies

  • Case studies and perspectives of the Bank on climate scenarios