Understanding Transition Risk: A Climate-ready Approach

Understanding Transition Risk: A Climate-ready Approach
New course!  Global regulators have identified three primary categories of environmental risks impacting the financial services sector: transition, physical and legal. Transition risks, specifically, are those linked to the transition to a net-zero carbon economy including policy and regulatory risks, technology risks, market risks and reputational risks. Regulators are concerned that transition risks can present significant financial materiality concerns for the financial services sector. (climate)
 
  Date:
May 19, 2022

  Time:
10:00 a.m. - 12:30 p.m. EDT
3:00 - 5:30 p.m. BST

  Presented By:
Thomas Verhagen, Instructor and Advisor

  Session Length:
2.5  hours - Delivered live virtually

 

About This Course
 

This course will provide a comprehensive overview of transition risk, and its potential impacts. It will also draw on a University of Cambridge framework designed to help identify and quantify the financial materiality transition risks may have on a variety of different sectors and assets. The course will include a working case study allowing participants to apply their own understanding and analysis of transition risk. 
This course will be delivered live virtually.

Key topics covered will include:

  • A review of climate change and climate risk to financial institutions
  • An overview of transition risks: including its definition, varying impact, link to stranded assets, and relationship with physical risk
  • The regulation and governance of transition risks (including the Paris Agreement and Task Force on Climate-Related Financial Disclosures)
  • Examples of transition risks across and within sectors
  • An introduction on how to model transition risks

 

Learning Objectives

The course will enable participants to:

  • Describe climate change and its financial materiality to banks’ clients across various sectors
  • Identify and describe transition risk and its potential impact on financial products (e.g. loans, investments, etc.)
  • Outline the growing regulatory and disclosure requirements around transition risk
  • Explore ways of thinking about the potential impact of transition risk across different sectors, business models and assets
  • Examine approaches to assessing transition risk and apply Cambridge’s transition risk framework

 

 
Agenda
 Time   Topic
 Part I
 

Overview of the Low-carbon Economy, and Transition Risk

  • Climate and its financial materiality
  • Climate risk
  • The governance and regulation of transition risk
 Part II
 

The Financial Materiality of Transition Risk

  • Factors impacting transition risk
  • Case study examples
 Part III
 

Modelling Transition Risk

  • Introduction to modelling transition risk
  • Transition risk exercise


Who Should Attend

 

  • Any finance professional interested in the impact the zero-carbon transition will have for the financial assets and the financial services sector


About Our Expert

  
  Thomas Verhagen is a former banker specialized in sustainable finance. His banking career encompassed roles in client coverage, risk management, financial restructuring and product innovation. Across the Americas and EMEA, Thomas has worked with banks, asset managers, pension funds, DFIs, social enterprises, financial regulators, fintechs and universities. In his work, Thomas bridges academia and practice to deliver ambitious yet pragmatic outcomes. His drive comes from a desire to help grow businesses and institutions that successfully combine commerciality and sustainability at scale.

Thomas is a consultant and advisor for financial institutions and fintechs. Having previously led the banking group at the University of Cambridge Institute for Sustainability Leadership (CISL), he now holds a Senior Associateship there with a special focus on fintech for sustainability.

Thomas is a co-author of the CFA’s ESG Investing certification. He holds a M.Sc. in Finance from Tilburg University.


Continued Risk Learning Credits: 2

PRMIA Continued Risk Learning (CRL) programs provide you with the opportunity to formally recognize your professional development, documenting your evolution as a risk professional. Employers can see that you are not static, making you a highly valued, dynamic, and desirable employee. The CRL program is open to all Contributing, Sustaining, and Risk Leader members, providing a convenient and easily accessible way to submit, manage, track and document your activities online through the PRMIA CRL Center. To request CRL credits, please email [email protected].

Registration
 Membership Type Price
   
 Sustaining, Corporate, and RIM Members $159
 Contributing Members, Non Members $199

If this is your first time accessing the PRMIA website you will need to create a short user profile to register. Save on registration by becoming a member.

 
When
5/19/2022 10:00 AM - 12:30 PM
Where
Live Virtual Course
 

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