Climate Change Risk Management in Banks : : The Next Paradigm / / Saloni P. Ramakrishna.

• VerfasserIn: Ramakrishna, Saloni P. ,
• Place / Publishing House: Berlin ;, Boston : : De Gruyter, , [2023]; 2024
• Year of Publication: 2023
• Language: English
• Series: The Moorad Choudhry Global Banking Series ,
• Physical Description: 1 online resource (XIX, 306 p.)

Banks, like other businesses, endeavor to drive revenue and growth, while deftly managing the risks. Dubbed the next "frontier" in risk management for financial services, climate related risks are the newest and potentially the most challenging set of risks that banks are encountering. On the one hand, banks must show their commitment to becoming net zero and, on the other, help their customers transition to more sustainable operations, all this while managing climate-related financial risks. It is a paradigm shift from how the banking industry has traditionally managed risks as climate change risks are complex. They are multilayered, multidimensional with uncertain climate pathways that impact real economy which in turn influences the financial ecosystem in myriad ways. Climate Change Risk Management in Banks weaves the complete lifecycle of climate risk management from strategy to disclosures, a must-read for academics, banking professionals and other stakeholders interested in understanding and managing climate change risk. It provides much-needed insights, enabling organizations to respond well to these new risks, protect their businesses, mitigate losses and enhance brand value. Saloni Ramakrishna, an acknowledged financial industry practitioner, argues that given the uncertain and volatile climate paths, complex geopolitical patterns, and sustainability challenges, banks and business professionals will benefit from a wholistic approach to managing climate change risks. The book provides a blueprint and a cohesive framework for embracing and maintaining such an approach, in a simple and structured format.

Table of Contents

Frontmatter -- Advance Praise for Climate Change Risk Management in Banks: The Next Paradigm -- Acknowledgments -- Preface -- Design and Structure of the Book -- Opening Notes -- Contents -- Part 1: Brief Overview of Risk Management -- The Big Picture -- Chapter 1 An Overview of Risk and Risk Management in Banks -- Chapter 2 The Different Flavors of Risk that Banks Work With -- Part 2: The What, Why and Who of Climate Change Risks -- Practitioner's Note - Moorad Choudhry -- Chapter 3 ESG and Climate Change as Relevant for Banks -- Chapter 4 Climate-related Financial Risks for Banks -- Chapter 5 Importance of Understanding and Acting on Climate Change -- Chapter 6 Challenges for Banks in the Climate Change Risk Management Space -- Chapter 7 Players of the Climate Change Risk Landscape -- Part 3: The "How" of Managing Climate Change Risks - Building Blocks -- Practitioner's Note -- Chapter 8 Building Blocks - The Big Picture -- Chapter 9 Principles for Effective Management of Climate-related Financial Risks -- Chapter 10 Risk Appetite Statement (RAS) -- Chapter 11 Climate-related Risk Data -- Chapter 12 Identification, Assessment and Measurement of Climate-related Financial Risks -- Chapter 13 Scenario Analysis and Stress Testing -- Chapter 14 Risk Mitigation, Control, and Monitoring Process -- Chapter 15 Disclosures and Reporting Requirements -- Chapter 16 Operating Model for Climate Change Risk Management at Banks: Some Pointers -- Part 4: A Glimpse into the Complex Universe of Multilayered, Interlinked Climate Change Risks -- Practitioner's Note -- Chapter 17 Interlinks - The Big Picture -- Chapter 18 Interlinks with Financial and Non-financial Risks of Banks -- Chapter 19 Capital and Climate Change Risks - the Links -- Part 5: Going Forward -- Practitioner's Note -- Chapter 20 Going Forward -- Closing Notes -- Bibliography -- List of Abbreviations -- List of Figures -- List of Tables -- About the Author -- About the Series Editor -- Index