Breakout Session 2: Incorporating Physical Climate Risk Impacts into Stress Testing: A Simple Approach Using Historical Weather Events (FRG)

Climate change will challenge our risk approaches, just as the sudden shocks of the Great Recession and COVID revealed serious areas of improvement. In recent years, institutions have been encouraged, and many are now required, to bolster their routine risk assessments by including climate risk impact. As regulators and stakeholders make increasing calls to action, we outline the key requirements to incorporate physical climate risk into loss estimation.