Climate Risk Webinar Series

Climate Risk has been a widely debated and researched topic in recent years. Primarily, there are 2 main areas within Climate Risk that have garnered attention – Physical Risk and Transition Risk. This series will cover both topics in detail in separate webinars, relating the topics to the work that MathWorks has been doing in this space.

Webinar 1: Assessing the Impact of Physical Climate Risk on Financial Portfolios: Floods and Tropical Cyclones

Financial institutions are increasingly challenged by the need to assess and manage the impact of both acute and chronic physical risk from climate change on financial portfolios. 

This webinar will guide participants on how the MathWorks suite of analytical tools can facilitate addressing these challenges. We will explore:

• Data Acquisition and Management: Approaches to collecting and handling various climate-related datasets, such as geographical climate risk maps, satellite imagery, and historical climate event data.
• Physical Risk Assessment: Techniques for incorporating physical climate risks, such as NatCat events like extreme weather and long-term climatic shifts, into financial asset analysis. 
• Model Development: Building models that consolidate diverse data types to simulate and assess the impact of physical climate risks on asset valuation across multiple scenarios.
• Deployment and Reporting: Strategies for deploying physical risk models and sharing their outcomes through visualizations and reports that can integrate seamlessly with existing risk management frameworks.

The session will offer insights into practical methodologies and tools for quantifying and reporting on the physical risks climate change poses to financial assets, utilizing both Open Source and proprietary data.

Webinar 2: Assessing Climate Impacts on Credit Risk

Financial institutions face significant challenges when assessing climate-related transition risks, including limited empirical data, long time horizons, methodological complexities, and organization-specific requirements. The United Nations Environment Programme Finance Initiative (UNEP FI) addresses these issues through a pilot program that introduces a structured, scenario-based risk assessment framework.

This methodology combines bottom-up expert judgment with top-down scenario parameters. It begins by estimating the impacts of climate transition scenarios on a small subset of borrowers and then extrapolates these effects to assess portfolio-wide changes in creditworthiness.

In this webinar, MathWorks will guide you through the UNEP FI approach using climate transition scenario data from the Bank of Canada. You’ll gain practical insights into performing a transition risk assessment for corporate lending portfolios and learn how to address common challenges in the process.

Highlights

• Learn what MathWorks has been doing the Climate Risk space with Financial Institutions
• Learn how MathWorks utilizes both Open Source, proprietary software and proprietary data to work on both Physical and Transition Risk