Climate Resilience in Financial Systems Training Course

Participants can build a defensible climate-risk materiality map from available data.

• Hazard, exposure and vulnerability data assembled for financial portfolios
• Geocoding methods connect physical assets with hazard locations
• Sector classification supports transition-risk exposure screening and comparison
• Climate-risk materiality matrix ranks exposures by probability and impact
• Data gaps documented using source, quality, coverage and timeliness criteria
• Proxy variables selected where counterparty-level climate data remains unavailable

Participants can structure climate scenarios and translate them into financial stress tests.

• NGFS scenarios compared by policy timing, emissions pathway and temperature outcome
• Scenario narratives converted into macroeconomic and sector-specific risk drivers
• Orderly, disorderly and hot-house pathways tested against portfolio assumptions
• Credit stress parameters adjusted for revenue, costs, collateral and default
• Reverse stress testing identifies climate conditions breaching risk appetite
• Model limitations recorded through sensitivity analysis and expert judgement

Participants can incorporate climate evidence into borrower assessment and credit processes.

• Borrower climate-risk questionnaire aligned with sector-specific financial exposures
• Cash-flow forecasts adjusted for hazard disruption and transition costs
• Collateral vulnerability assessed using location, insurability and recovery assumptions
• Loan covenants drafted around adaptation milestones and emissions reporting
• Probability-of-default overlays calibrated from climate risk indicators
• Credit approval memoranda document climate assumptions and decision rationale

Participants can assess portfolio resilience and select appropriate investment responses.

• Portfolio heatmaps identify concentrated climate exposures by sector and geography
• Asset allocation tested against physical risk, transition risk and adaptation potential
• Paris alignment metrics distinguished from financial climate-resilience measures
• Engagement priorities set using issuer transition plans and adaptation preparedness
• Resilience-themed investments screened for revenue durability and additionality
• Risk appetite statements incorporate climate concentration and escalation thresholds

Participants can appraise adaptation investments using financial and resilience value drivers.

• Adaptation investment cases quantify avoided losses, service continuity and co-benefits
• Theory of change links resilience interventions to measurable financial outcomes
• Cost-benefit analysis includes avoided damage and residual-risk assumptions
• Blended finance structures allocate risks among public and private investors
• Resilience bonds and catastrophe bonds compared for relevant use cases
• Additionality and maladaptation risks tested before approving adaptation finance

Participants can connect climate disclosures and supervisory expectations to internal risk processes.

• ISSB IFRS S2 requirements mapped to governance, strategy, risk and metrics
• TCFD recommendations used to structure climate-related financial disclosures
• Basel climate-risk principles linked to bank governance and risk management
• Double materiality distinguished from enterprise value materiality assessments
• Financed emissions measured using Partnership for Carbon Accounting Financials methodology
• Disclosure controls test traceability, consistency and decision-useful evidence

Participants can evaluate carbon-market instruments and carbon-credit risks for financial decisions.

• Compliance and voluntary carbon markets compared by demand and regulation
• Allowance, offset and carbon-credit instruments distinguished by market function
• Additionality, permanence, leakage and double counting tested for credit integrity
• ICVCM Core Carbon Principles applied to carbon-credit quality assessment
• Carbon price risk incorporated into project valuation and portfolio analysis
• Registry, custody and counterparty controls reduce carbon-credit transaction risk

Participants can design climate-risk governance and control arrangements for financial institutions.

• Board responsibilities defined through climate-risk oversight mandates and reporting
• Three Lines Model assigns ownership, challenge and assurance responsibilities
• Risk appetite metrics establish climate thresholds, limits and escalation triggers
• Model governance controls validate climate assumptions, inputs and outputs
• Management information packs combine leading indicators with financial exposures
• Greenwashing controls test claims against evidence, methods and approvals

Participants can prepare a practical implementation roadmap for climate resilience in financial decision-making.

• Current-state assessment identifies priority gaps across data, methods and governance
• Material actions sequenced by risk reduction, feasibility and decision urgency
• RACI matrix assigns accountable owners for climate-risk implementation tasks
• Milestones define deliverables, dependencies, review points and approval gates
• Key risk indicators monitor portfolio resilience and implementation progress
• Application plan aligns first-year actions with institutional risk appetite