Programme Start Date

30/04/2021

Duration

30 April - 21 May 2021

Delivery mode

Online

Location

Online

Application Deadline

16/04/2021 - 23:59 Italian time

Past training, registrations closed

Programme Description

Co-organized with Oliver Wyman, in scientific cooperation with the EUI’s School of Transnational Governance

This Climate Risks Online Academy co-organized by Oliver Wyman and the Florence School of Banking and Finance (EUI), in scientific cooperation with the EUI’s School of Transnational Governance, combines the expertise and tools of the financial industry to assess and grasp the risks posed by climate change to the financial sector. To understand the physical risk exposure of the financial system, it is essential to realise the link between physical phenomena such as global warming, sea level rise, more frequent flooding and droughts with the corresponding financial losses and risks. The same goes for transition risks and it’s still poorly understood repercussions.

The Academy is held in a context in which climate change is deeply transforming the role of central banks and, in particular, is leading to a re-evaluation of central banks’ financial stability mandate. It is also impacting prudential authorities. Instead of examining how the risk landscape has been altered by climate change, the Academy will review practical approaches for quantifying their impact and explore best practices for integrating climate risk into both prudential and risk management frameworks.

This online Academy has been designed for staff members of financial institutions, micro-prudential and macro-prudential authorities who wish to deeply understand the crucial risks that climate change pose to the financial system. In addition to providing topical content and practical tools, this online Academy will also act as a platform to stimulate exchange and debate between public officials, academics and private practitioners.

Topics

  • Climate Change in Theory and in Reality
  • Climate-related Financial Risk Analysis
  • Physical Risks
  • Transition Risks
  • Integration of Climate-Related Risk Factors into Risk Management Approach
  • The Prudential Supervision of Climate Risks
  • Macro Perspectives on Climate Risks
  • Climate Regulatory Risks

Objectives

  • Identify climate-related financial risks and the impact of climate change on the financial sector;
  • Understand how the financial sector is exposed to the different implications of climate change (from sea level rise to carbon pricing);
  • Calculate and quantify climate risks and exposures (e.g., climate scenarios, transition risks) under a series of given assumptions;
  • Debate the impact of physical risks on the global economy;
  • Link climate risks with wider macro-financial variables;
  • Design state of the art climate scenario designs;
  • Define and leverage climate scenarios to quantify their potential financial impacts on financial institutions;
  • Discuss how climate risks can be incorporated into an institution’ risk management framework and how risk management approaches can be adjusted to capture climate risks;
  • Comprehend the role of central banks to hold financial stability from climate-related risks;
  • Describe the potential implications of climate change for financial stability;
  • Review latest EU climate action instruments and discuss emerging climate regulatory risks.

Format

Your progression in the course will take approximately 20-25h hours to complete.

The Academy combines:

  • Self-paced material, including suggested readings, forum exchanges, and video lectures
  • Live classes: the Academy will feature a kick-off session and four live classes, which include practical activities led by instructors, a policy roundtable, and time for questions by participants.

LIVE CLASSES

  • 30 April – Kick-off Session (2.00 – 3.00pm CET)
  • 6 May – Physical Risks (1st Live Class | 2.00-3.30pm CET)
  • 10 May – Transition Risks (2nd Live Class | 2.00-3.30pm CET) 
  • 18 May – Practical Activity (3rd Live Class | (2.00-3.30pm CET) 
  • 21 May – Policy Roundtable (4th Live Class | (2.00-3.30pm CET)

Prerequisites

  • A BA/MA degree in Law, Economics, Management, Political Science or equivalent degree, or 6-10 years professional experience, is recommended to be able to follow the course.
  • A basic knowledge of financial markets regulation and prudential risk management is required to follow this course. A prior exposure to risk modelling is recommended.

Instructors

  • Portrait picture of Jan Cornillie

    Jan Cornillie

    Research Associate

    School of Transnational Governance

  • Portrait picture of Jos Marie R. Delbeke

    Jos Marie R. Delbeke

    Part-time Professor

    School of Transnational Governance

  • Portrait picture of Paul Fisher

    Paul Fisher

    Cambridge Institute for Sustainability Leadership, Cambridge University

  • Portrait picture of Ilya Khaykin

    Ilya Khaykin

    Oliver Wyman

  • Portrait picture of Cornelia Neumann

    Cornelia Neumann

    Oliver Wyman

  • Portrait picture of Alban Pyanet

    Alban Pyanet

    Oliver Wyman

  • Portrait picture of Anne Platou

    Anne Platou

    DNB Bank

  • Portrait picture of Bas Van Ruijven

    Bas Van Ruijven

    International Institute for Applied Systems Analysis, IIASA

  • Peter Martin Vis

    Project Associate

    School of Transnational Governance

Guest contributors

  • Adrien Amzallag

    European Securities and Markets Authority

  • Portrait picture of Julien Mazzacurati

    Julien Mazzacurati

    European Securities and Markets Authority

  • Portrait picture of Beverley Adams

    Beverley Adams

    Marsh Risk Consulting

  • Portrait picture of David Carlin

    David Carlin

    United Nations Environment Programme Finance Alternative

  • Portrait picture of Reby Gulcan

    Reby Gulcan

    Global Infrastructure Partners

  • Portrait picture of Paul Hiebert

    Paul Hiebert

    European Central Bank

  • Portrait picture of Angel Monzon

    Angel Monzon

    European Banking Authority

  • Raffaele Passaro

    European Banking Authority

  • Portrait picture of Hanno Stremmel

    Hanno Stremmel

    European Banking Authority

Teachin Associate

What you will gain

  • Identify climate-related financial risks and the impact of climate change on the financial sector;
  • Understand how the financial sector is exposed to the different implications of climate change (from sea level rise to carbon pricing);
  • Calculate and quantify climate risks and exposures (e.g., climate scenarios, transition risks) under a series of given assumptions;
  • Debate the impact of physical risks on the global economy;
  • Link climate risks with wider macro-financial variables;
  • Design state of the art climate scenario designs;
  • Define and leverage climate scenarios to quantify their potential financial impacts on financial institutions;
  • Discuss how climate risks can be incorporated into an institution’ risk management framework and how risk management approaches can be adjusted to capture climate risks;
  • Comprehend the role of central banks to hold financial stability from climate-related risks;
  • Describe the potential implications of climate change for financial stability;
  • Review latest EU climate action instruments and discuss emerging climate regulatory risks.

Target Audience

  • Officials from EU institutions, member states' governments and international organisations

Coordinators

Contacts

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