Podcast
Questions and Answers
What is the purpose of integrating climate risks into strategies and overall risk management frameworks for financial institutions?
What is the purpose of integrating climate risks into strategies and overall risk management frameworks for financial institutions?
- To reduce operational efficiency
- To ignore climate risks completely
- To increase profitability by taking on more climate-related risks
- To identify material exposures to climate risks and disclose relevant key metrics (correct)
How can financial institutions manage risks and shift finance using stress tests?
How can financial institutions manage risks and shift finance using stress tests?
- By disregarding climate scenarios altogether
- By avoiding stress tests to maintain stability
- By exposing themselves to high-risk investments without assessment
- By using stress tests as a tool to manage risk and shift finance (correct)
Why is board-level attention to climate risks important for financial institutions?
Why is board-level attention to climate risks important for financial institutions?
- To avoid disclosing any climate-related information
- To increase capital impact from climate risks
- To embed climate risks into strategies and risk management frameworks (correct)
- To ignore the impact of climate risks on business operations
In what areas can future trends related to climate change risk and net zero transition be classified?
In what areas can future trends related to climate change risk and net zero transition be classified?
What is the significance of identifying material exposures to climate risks for financial institutions?
What is the significance of identifying material exposures to climate risks for financial institutions?
Why is portfolio alignment a useful tool for banks to set their targets?
Why is portfolio alignment a useful tool for banks to set their targets?
What role does stress testing play in managing climate risks within financial institutions?
What role does stress testing play in managing climate risks within financial institutions?
How can banks benefit from assessing the capital impact from climate risks through scenario analysis?
How can banks benefit from assessing the capital impact from climate risks through scenario analysis?
What is the primary reason for increasing climate prudential regulation by institutions worldwide?
What is the primary reason for increasing climate prudential regulation by institutions worldwide?
What are the implications of embedding climate risks into internal governance frameworks for financial institutions?
What are the implications of embedding climate risks into internal governance frameworks for financial institutions?
