Sept. 9th, 2021Climate Risk Sept. 9th, 2021
Climate Stress on Operational Risk
As part of its regular exercise on operational risk scenario benchmarking, the American Bankers Association (ABA) conducted a climate stress study of select operational risk scenarios between 2020 and 2021. In this article, we describe the approach we have implemented to assess the impact of climate change on a portfolio of operational risks. The approach and results are particularly relevant to the Basel Committee recommendations.