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Climate-related financial risks are considered a cross-cutting risk category, causing impacts across existing risk types, including credit, market, operational, and reputational risks.
Globally, financial regulators require banks to integrate climate-related risks into risk identifications, management, and control processes.
Depending on the organization’s size and maturity of their current risk management frameworks, firms can consider more granular mapping as part of impact assessment. Implementation of BaFin guidance requires supervisory entities to develop key capabilities that impact data, process, technology, and culture. Below core aspects need to be considered when firms implement regulations on sustainability risks.
Understanding the wider impact on the ERM framework
Materiality assessment of impacts
Overlap with TCFD guidance
Capability gap analysis and reporting
Decoding the Surety Bonds enigma for International Trade
Enhancing customer journeys in the KYC process
Making banking services more accessible
Integrated Risk Appetite and Financial Crime Risk Controls Assessment