Climate Risk Management For Financial Institutions: Building Resilience In A Changing World

Introduction

Climate Risk Management for Financial Institutions empowers professionals to understand and mitigate the growing financial risks associated with climate change. This course focuses on assessing physical and transition risks, developing climate risk models, and implementing strategies for building resilience. Participants will learn to analyze climate data, evaluate portfolio exposure, and comply with evolving regulatory requirements. By mastering climate risk management, professionals can safeguard financial assets, enhance strategic planning, and contribute to a sustainable financial system.

The increasing frequency and severity of climate-related events are posing significant financial risks to institutions across the globe, demanding a proactive and comprehensive approach to risk management. This course delves into the intricacies of climate scenario analysis, stress testing, and disclosure frameworks, empowering participants to develop and implement effective climate risk management strategies. By integrating climate science with financial expertise, this program enables individuals to build resilient financial portfolios and contribute to the transition towards a low-carbon economy.

Target Audience:

• Risk management professionals
• Financial analysts
• Portfolio managers
• Sustainability officers
• Compliance officers
• Credit analysts
• Investment bankers
• Insurance professionals
• Regulatory and legal professionals
• Students of finance and environmental science
• Individuals interested in climate risk management
• Corporate strategists
• Asset managers

Course Objectives:

• Understand the principles and benefits of climate risk management for financial institutions.
• Implement techniques for assessing physical and transition risks associated with climate change.
• Understand the role of climate data and scenario analysis in risk assessment.
• Implement techniques for developing and applying climate risk models.
• Understand the principles of stress testing and scenario planning for climate-related risks.
• Implement techniques for conducting climate stress tests and scenario analyses.
• Understand the role of portfolio exposure analysis in climate risk management.
• Implement techniques for evaluating and managing climate-related portfolio risks.
• Understand the legal and regulatory frameworks surrounding climate risk disclosure.
• Implement techniques for ensuring compliance with climate risk reporting requirements.
• Understand the role of stakeholder engagement and communication in climate risk management.
• Understand the challenges and opportunities of integrating climate risk into financial decision-making.
• Develop strategies for implementing and scaling up climate risk management initiatives.

DURATION

10 Days

COURSE CONTENT

Module 1: Foundations of Climate Risk Management

• Principles and benefits of managing climate-related financial risks.
• Understanding the physical and transition risks of climate change.
• Benefits of proactive risk management and strategic resilience.
• Historical context and emerging climate risk trends.

Module 2: Physical and Transition Risk Assessment

• Techniques for assessing physical risks (e.g., floods, storms) and transition risks (e.g., policy changes).
• Implementing climate vulnerability assessments and risk mapping.
• Utilizing climate risk frameworks and methodologies.
• Managing risk identification and prioritization.

Module 3: Climate Data and Scenario Analysis

• Understanding the role of climate data and projections in risk assessment.
• Implementing climate scenario analysis and modeling.
• Utilizing climate data platforms and tools.
• Managing climate data interpretation and application.

Module 4: Climate Risk Model Development

• Techniques for developing and applying climate risk models.
• Implementing quantitative and qualitative climate risk assessments.
• Utilizing climate risk modeling tools and techniques.
• Managing model validation and calibration.

Module 5: Stress Testing and Scenario Planning

• Understanding the principles of stress testing for climate-related risks.
• Implementing scenario planning and stress test design.
• Utilizing climate stress testing frameworks and methodologies.
• Managing stress test execution and analysis.

Module 6: Climate Stress Test and Scenario Analysis Implementation

• Techniques for conducting climate stress tests and scenario analyses.
• Implementing scenario-based risk assessments and impact evaluations.
• Utilizing stress testing platforms and tools.
• Managing stress test reporting and communication.

Module 7: Portfolio Exposure Analysis

• Understanding the role of portfolio exposure analysis in climate risk management.
• Implementing portfolio risk assessments and sector analysis.
• Utilizing portfolio risk analytics and tools.
• Managing portfolio risk monitoring and control.

Module 8: Climate-Related Portfolio Risk Management

• Techniques for evaluating and managing climate-related portfolio risks.
• Implementing portfolio diversification and risk mitigation strategies.
• Utilizing climate risk metrics and indicators.
• Managing portfolio risk reporting and disclosure.

Module 9: Legal and Regulatory Frameworks

• Understanding legal and regulatory frameworks for climate risk disclosure.
• Implementing compliance with climate risk reporting requirements.
• Utilizing climate risk regulations and guidelines.
• Managing legal and regulatory risks.

Module 10: Climate Risk Reporting Compliance

• Techniques for ensuring compliance with climate risk reporting requirements.
• Implementing climate risk disclosure standards and frameworks.
• Utilizing climate risk reporting platforms and tools.
• Managing climate risk reporting audits and verification.

Module 11: Stakeholder Engagement and Communication

• Understanding the role of stakeholder engagement in climate risk management.
• Implementing climate risk communication and disclosure strategies.
• Utilizing stakeholder engagement platforms and tools.
• Managing stakeholder feedback and dialogue.

Module 12: Climate Risk Integration Challenges

• Understanding the challenges of integrating climate risk into financial decision-making.
• Implementing climate risk integration in existing risk management processes.
• Utilizing climate risk data and analytics for decision support.
• Managing change management and adoption.

Module 13: Climate Risk Initiative Scaling

• Techniques for developing climate risk management project roadmaps.
• Implementing pilot project testing and evaluation.
• Utilizing scalability and performance optimization techniques.
• Managing climate risk management team and governance.

Module 14: Case Studies: Climate Risk Management Implementations

• Analyzing real-world examples of successful climate risk management implementations.
• Highlighting best practices and innovative solutions.
• Documenting project outcomes and impact.
• Industry and risk management leader testimonials.

Module 15: The Future of Climate Risk Management

• Exploring emerging climate risk technologies and trends.
• Integrating AI and machine learning for advanced climate risk analysis.
• Adapting to evolving climate scenarios and regulatory landscapes.
• Building resilient and sustainable financial ecosystems.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.