Certifed Expert in Climate Risk Management

Recognizing the diverse backgrounds of participants, from those with expertise in green finance to those with a strong foundation in risk management, this unit is designed to level-set all participants, providing a comprehensive overview that bridges the knowledge gap between these two critical areas. 

The unit begins by exploring the fundamentals of sustainable and green finance, including its key principles, the role of Environmental, Social, and Governance (ESG) factors, and the impact of climate change on financial markets. This section will provide participants with a solid understanding of how sustainable finance integrates with broader financial strategies to mitigate climate risks. 

Next, the unit introduces the basics of financial risk management, focusing on its application within the financial sector. Participants will learn about various types of risks, such as credit, market, operational, and liquidity risks, and how these are influenced by climate change. The unit will also cover essential risk management frameworks, tools, and practices used in the financial industry, setting the stage for more advanced discussions in subsequent units. 

Throughout the unit, the interconnection between climate change and financial risk management will be emphasized, highlighting how these two fields intersect to influence decision-making in the financial sector. 

They will assess the impact of both transition and physical risks on financial institutions' portfolios and operations, enabling them to develop strategies for managing these risks effectively. Participants will gain a comprehensive understanding of the tools and methodologies for climate risk assessment and integration into financial decision-making processes. 

They will develop an effective climate risk management framework aligned with organizational objectives, fostering proactive risk management and strategic decision-making. This unit aims to equip participants with the knowledge and skills necessary to implement robust climate governance structures and strategies within their institutions.

They will apply these measurement techniques to accurately assess the exposure of financial portfolios to climate risk, enabling informed risk management decisions. By understanding and implementing these methodologies, participants will enhance their ability to manage and mitigate climate risks effectively. 

In this unit, participants will acquire the skills to analyze climate-related scenarios, conduct stress tests for organizational resilience, and perform sensitivity analyses to gauge the impact of various physical and transition risk drivers. They will be equipped to integrate these analyses seamlessly into a broader risk management and economic capital strategy and take a proactive approach to the evolving financial sector risk landscape. 

They will learn to integrate sustainability principles, set realistic targets, engage stakeholders, and navigate the financial and regulatory landscape to ensure a successful climate transition. Participants will understand how to build a credible plan that aligns with international best practices and standards. Additionally, they will recognize the critical importance of green transition planning in enhancing the financial sector's resilience and contributing to global climate goals.  

Participants will be proficient in identifying relevant disclosure frameworks, interpreting reporting guidelines, and integrating sustainability disclosures into corporate governance structures. They will grasp the importance of transparent reporting in enhancing organizational resilience, reputation, and stakeholder trust amidst the challenges posed by climate change and shifting market expectations. 

We explore the obstacles that hold back efforts to mainstream climate finance and develop a shortlist of success factors that should encourage the uptake of climate mitigation and adaptation initiatives.

The barriers to scaling up green finance revolve around …

• the widespread short-term perspective of small businesses amidst highly volatile economic conditions,
• the misalignment of sales incentives with the high-level climate finance strategy at the financial institution,
• the (perceived) technical complexity and large investment volumes of green projects generally and of adaptation investments specifically.

The success factors in building a sustainable deal pipeline in climate finance include …

• simple, replicable interventions that can be implemented with certainty in terms of technology and budgets.
• creating MSME ecosystems around climate finance initiatives and larger infrastructure projects developed in public private partnerships.
• cultivating the symbiotic relationship between conventional small business credit and the climate finance agenda in the sense of “Inclusive Finance meets Climate Risk”.

Benefit from an Alumni discount and have the course credited when you continue to the Master of Leadership in Sustainable Finance.

Benefit from an Alumni discount and have the course credited when you continue to the Diploma in Green Finance.

Benefit from an Alumni discount and have the course credited when you continue to the Diploma in Risk Managment.

Benefit from an Alumni discount and have the course credited when you continue to the Diploma in Financial Inclusion.