4 Ways Your Firm Can Prepare
The Bank of England (BOE) has been a leader in implementing climate stress tests. Other regulators … [+] are following suit.
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Worldwide energy price shocks, crop and water shortages, migration from low-lying areas, and increasing trade tensions. These are just some of the climate-related challenges societies will confront in coming years. Financial actors are increasingly looking to understand the unique risks and opportunities presented by climate change. Financial regulators have also taken notice. As Federal Reserve (Fed) Governor Lael Brainard stated, “climate change and the transition to a sustainable economy also pose risks to the stability of the broader financial system.”
Stress Testing: A Regulatory Tool
In the aftermath of the Global Financial Crisis, many financial supervisors recognized that systemic financial risks had been overlooked, and these risked had wreaked havoc…
