2024/05/27 by Víctor Cárdenas, Cardenas, Victor
Economics, Econometrics and Finance · #FOS: Economics and business #General Economics (econ.GN) #Insurance and Financial Risk Management #Sustainable Finance and Green Bonds
paper · pdf · doi:10.48550/arxiv.2405.17682
openalex publication_date 2024/05/27 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31
The document discusses the financial climate risk in the context of the banking industry, emphasizing the need for a comprehensive understanding of climate change across different spatial and temporal scales. It highlights the challenges in estimating physical and transition risks, specifically extreme events and limitations of current climate models. The document also reviews current gaps in assessing physical and transition risks, including the development, improvement of modeling frameworks, highlighting the need for detailed databases of exposed physical assets and climatic hazard modeling. It also emphasizes the importance of integrating financial climate risks into financial risk management practices, particularly in smaller banks and lending organizations.