How should firms stress test for climate change?

Richard BennettClimate Risk, Enterprise Risk ManagementLeave a Comment

Climate change creates risks to both the safety and soundness of individual firms and to the stability of the whole financial system. These are already starting to crystallise and have the potential to increase substantially in the future. The challenge for firms is considerable, and perhaps not unlike that posed by market risk and capital adequacy requirements in the 1990s. … Read More

Challenges to Financial Stability in the Eurozone

Richard BennettMarket RiskLeave a Comment

Through the bi-annual Financial Stability Review issued in November, the European Central Bank (ECB) warned of potential side effects of its loose monetary policy, highlighting how years of unprecedented stimuli designed to bolster the economy is contributing to an erosion of financial stability. The Review goes to the heart of the challenge faced by the ECB, which has only just … Read More