Climate risk management’s triple challenge: Ensuring global compliance, proper integration, and business resilience

In recent years, climate risk management has come into its own, but to truly manage it, traditional risks need to be updated to consider climate risks. We spoke to experts at RiskMinds International to gauge the industry’s progress in integrating climate risk management, particularly in credit risk, and explore the regulatory and compliance landscape and how to build business resilience.

Compliance and sustainability in finance with Bert Verdoodt, Danske Bank

Bert Verdoodt, Head of Regulatory Affiars, Data Protection & Sustainability Compliance, Danske Bank discusses the main forces shaping the regulatory agenda for 2024, particularly focusing on sustainability reporting and financial disclosures. He comments on the impact of geopolitical events on the regulatory agenda for 2025 and emphasises the importance of acting on available opportunities, such as harmonising legislation in Europe. He anticipates that sustainability compliance will mature as an integrated discipline within governance frameworks.

The cascading effects and interconnections missing from traditional climate risk models

Ajay Gambhir, Director of Systemic Risk Assessment, ASRA, discusses the intricate and often overlooked interconnections in climate change mitigation. He explains how traditional climate risk models fail to capture these complexities, highlighting the importance of considering both transition risks and physical climate risks. He also emphasises the value of narrative-based scenarios and worst-case analyses in improving financial institutions' risk management strategies and integrating climate risk assessment with other forms of crisis preparedness.

How to stay resilient to climate risks with Andrea Castoldi, BCG

Andrea Castoldi, Managing Director and Partner, BCG, discusses the dual nature of risks for institutions not acting on climate change and highlights the importance of evolving risk management practices for financial institutions. Learn how leveraging data, fostering partnerships, and incorporating advanced analytics can build stronger resilience against emerging risks.

Check back again later for more exclusive interviews from RiskMinds International!