The jury is still out on whether and to what extent climate-related risks are already incorporated into credit pricing and other financial indicators and their models. The reality is that the physical impacts of climate change and the need to adapt to increasing climate-related regulation are currently having impacts on business models, revenue, costs, and other business factors. This applies both to financial institutions as well as real economy businesses. To date, little advancement has been made in “climate risk modelling” by financial institutions, and financial supervisors are applying pressure to change that.
Climate in credit risk modelling training helps participants to distinguish between the underlying concepts of climate-change-driven credit risks, and navigate the limitations of currently available practices such as data availability. Participants will identify the risk transmission channels that lead from climate change to the financial impact on corporations. Finally, the course takes participants through the steps to practically integrate these risks into existing credit risk scoring models.