1 participant: RM4,000/$995
2 participants: RM8,000/$1,990
3 participants: RM12,000/$2,985
4 participants: RM16,000/$3,980
5 participants: RM20,500/$4,975
Discounts are available for group bookings. Please contact us for more details.
ESG Stress Testing for Financial Institutions
A 4-part, 12-hour online program
Date: 20th - 23rd February 2023
WHY THIS COURSE?
For financial institutions, measuring and managing market and credit risk is a relatively straightforward process done through established tools, models and methodologies. However, accurately identifying and measuring the complex risks directly associated with climate change (and other important events) is a significantly more challenging task. It is, however, a task that financial institutions must now undertake, and with a high degree of accuracy, in order to satisfy stakeholders and supervisors. Closely linked to identifying and measuring climate related risks is ESG disclosure and scenario analysis. Again, two new and specialised activities that must now be understood by financial institutions and those who regulate them.
As well as the inherent importance of being able to accurately assess the climate related risk of financial portfolios, financial regulators are now requiring the effective linkage of climate related disclosure and scenario analysis, and the development of rigorous holistic stress testing programmes. Through the development and adoption of such programmes, financial institutions will be able to strengthen their resilience and risk management frameworks against climate related risks and other ESG related metrics.
-
Course objectives:
The objective of this 12-hour programme will allow attendees to:- Gain an understanding of what exactly is climate risk and how it affects financial institutions
- Know what climate risk disclosures are and look like
- Understand key terms and projection metrics
- Evaluate data sources and scenario generation
- Assess what modelling approaches are applicable for stress testing
- Identify the role of regulatory authorities
- Understand risk mitigation and control tools
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
Send me Details
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22
ESG Stress Testing for Financial Institutions
A 4-part, 12-hour online program
Date: 20th - 23rd February 2023
6.00am - 09.00am
UK
UK
1.00am - 1.00pm
UAE
UAE
2.00pm - 5.00pm
Singapore/KL
Singapore/KL
Send me Details
WHY THIS COURSE?
For financial institutions, measuring and managing market and credit risk is a relatively straightforward process done through established tools, models and methodologies. However, accurately identifying and measuring the complex risks directly associated with climate change (and other important events) is a significantly more challenging task. It is, however, a task that financial institutions must now undertake, and with a high degree of accuracy, in order to satisfy stakeholders and supervisors. Closely linked to identifying and measuring climate related risks is ESG disclosure and scenario analysis. Again, two new and specialised activities that must now be understood by financial institutions and those who regulate them.
As well as the inherent importance of being able to accurately assess the climate related risk of financial portfolios, financial regulators are now requiring the effective linkage of climate related disclosure and scenario analysis, and the development of rigorous holistic stress testing programmes. Through the development and adoption of such programmes, financial institutions will be able to strengthen their resilience and risk management frameworks against climate related risks and other ESG related metrics.
-
Course objectives:
The objective of this 12-hour programme will allow attendees to:- Gain an understanding of what exactly is climate risk and how it affects financial institutions
- Know what climate risk disclosures are and look like
- Understand key terms and projection metrics
- Evaluate data sources and scenario generation
- Assess what modelling approaches are applicable for stress testing
- Identify the role of regulatory authorities
- Understand risk mitigation and control tools
- Banks and finance houses
- Asset & investment managers
- Insurance companies
- Corporate treasuries
- Regulators and supervisors
- Consultants and advisors
A 12-hour online program will be delivered online through a stable, secure and free-to-access platform. The program itself will be delivered through lectures, worked examples and case studies in order to ensure a detailed and practical understanding of the program content. Participants will have plenty of opportunity to ask questions and interact with the program director. Login details and program materials will be sent to participants upon receipt of payment
The program is highly interactive and will encourage participation through exercises and case studies that the delegates will solve individually or in small workgroups. These activities are designed to allow delegates to practise and to consolidate the concepts that will be discussed during the lectured sessions of the program. The program will focus on the practical realities of the market, rather than taking an excessively mathematical or academic approach.
1 participant: RM4,000/$995
2 participants: RM8,000/$1,990
3 participants: RM12,000/$2,985
4 participants: RM16,000/$3,980
5 participants: RM20,500/$4,975
Discounts are available for group bookings. Please contact us for more details.
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
AGENDA AND FORMAT
Each session will be interactive in a seminar format, with participants encouraged to engage with questions throughout.
PLATFORM
A 12-hour online program will be delivered online through a stable, secure and free-to-access platform. The program itself will be delivered through lectures, worked examples and case studies in order to ensure a detailed and practical understanding of the program content. Participants will have plenty of opportunity to ask questions and interact with the program director. Login details and program materials will be sent to participants upon receipt of payment
AGENDA
Part One
Session 1: Climate Risk
- Differentiating between physical (acute/chronic) and transition (stranded assets) risk
- Understanding the workflow: Disclosure > Scenario Analysis > Stress Testing
- Modelling physical and transitional risks: Climate Biennial Exploratory Scenario (CBES) (Bank of England)
- Identifying and understanding ESG window dressing: Greenwashing
- Evaluating credible corporate transition plans
Case Study: What do climate risk disclosures look like?
Session 2: Projection Metrics
- Carbon foot-printing
- Green/brown exposure
- Company engagement
- Ratings and research
- Scenario analysis
- Impact metrics
- DSCR: Debt service coverage ratio
- PD: Probability of default
Part Two
Session 1: Data Sources and Quality
- Working with indices: MSCI
- Incorporating data from sources such as Morningstar
- Model and data limitation forecasting 30-year horizons
- Data granularity
- Understanding data validations, reconciliations and plausibility checks
Session 2: Scenario Generation
- What is scenario generation - assessing and incorporating key event criteria:
- Plausible
- Forward looking
- High severity
- Low likelihood
- Overcoming bias in forecasting scenarios
- Precipitation: flooding, drought, soil moisture
- Effects on scenarios of sea-level rise
- Effects on scenarios of temperature change: lower or higher
- Effects on scenarios of wind: storms, hurricanes, typhoons and tropical cyclones
Case Study: Analysing ECB Macro-financial scenarios for the 2022 climate risk stress test
Part Three
Session 1: Climate Risk Events Case Studies
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We examine several real-life case studies and assess the risk and cost of each scenario. How do they help us with scenario analysis and risk evaluation?
- 2010 Deepwater Horizon in the Mexican Gulf
- 2011 Fukushima earthquake and tsunami
- 2021 Flooding in Germany
- Conducting cost estimates for climate risk events
Session 2: Modelling Approaches
- Modelling input variables
- Mapping scenarios to a counterparty
- Assessing counter-party level financial impacts
- Checking coherence against scenario
- Understanding the Bank of England Biennial Exploratory Scenario (BES)
Case Study: Working through a simplified stress test
Part Four
Session 1: Climate Governance and Regulatory Bodies
- Task Force on Climate-related Financial Disclosures
- UK Prudential Regulation Authority (PRA)
- The Partnership for Carbon Accounting Financials (PCAF)
- Science Based Targets initiative (SBTi)
- Bank Negara Malaysia and Securities Commission Malaysia requirements
Session 2: Potential Risk Mitigation and Control
- Compulsory precipitation and wind insurance for residential property
- Flood barrier construction
- Changes in the provision or pricing of key services
- Potential fire sales of at-risk assets
- Risk appetite re-appraisal: carbon budgets and carbon limits
EXPERT COURSE DIRECTOR
Christian Thornæs
Christian delivers training to blue chip investment and commercial banks across Europe, North America, Asia and the Middle East - ranging from specific one-off courses to complex programs designed to fit corporate strategic objectives.
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Examples of programs Christian has delivered recently include:
- Advised a major air traffic control operator how to structure payments, guarantees and funding for tender bids for contracts in countries where ECA support is a requirement.
- Carried out an intervention for the new head of a credit structuring team at a Chinese-South African JV investment bank focusing on credit risk mitigation, covenant structure and ECA support.
- Delivered a program to senior management of one of the major Exim banks to familiarise them with credit operations at private sector banks with whom they work actively.
Before beginning his training career, Christian worked as an investment banker and financial engineer in London and Hong Kong. His main responsibilities were to structure and sell new financial products to clients on both the issuer and the buy side. He was involved in ECA-backed transactions, including buyer and supplier credits, as well as forfaiting structures and also worked on the due diligence on the original MTS/London Thamesport financing.
Christian has an MBA from INSEAD, France as well as a BA and a M.Sc. (Econ.) from Copenhagen Business School, Denmark.
WHO WILL BENEFIT?
- Banks and finance houses
- Asset & investment managers
- Insurance companies
- Corporate treasuries
- Regulators and supervisors
- Consultants and advisors
TRAINING METHODOLOGY
The program is highly interactive and will encourage participation through exercises and case studies that the delegates will solve individually or in small workgroups. These activities are designed to allow delegates to practise and to consolidate the concepts that will be discussed during the lectured sessions of the program. The program will focus on the practical realities of the market, rather than taking an excessively mathematical or academic approach.
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22