S5 Ep2: A practical guide to climate change for risk management actuaries - A discussion

Brandon Horowitz is joined by some of the authors of the IFoA's practical guide to climate change for risk management actuaries to discuss some key questions raised by the guide, including:

• What are the challenges around climate change?
• How does climate impact on a financial institutions value chain? And why do we need to look across all of the value chain? How does this link in with some of the metrics (e.g. scope 1,2 and 3)
• Why do we have the deep dives on climate modelling risk? (link in with area of actuaries expertise and difference between climate scenarios and standard scenario modelling reliance on data providers, lessons learnt from climate scenario providers – basically a rich seam to bring it all together)
• How do you separate out the impacts from climate on existing risk factors that a firm is already exposed to from a stand-alone climate risk approach – how might the two work together? Is one approach better than the other? Do you need different approaches depending on how you start this?
• How do you get started with understanding climate risks? (read the guide and volunteer) how do you stay up to date? What resources are particularly useful?

Brandon's guests are:

Wendy Walford (chair of the working party) is head of climate risk, includes how the risk management framework allows for climate risk and what climate risk is for a large financial institution.

Mayukh Gayen is a risk and modelling consultant and climate change analytics lead which involves understanding the modelling and understand requirements to modelling climate risk

Caroline Spence  is Head of Chief Risk Office is responsible for all oversight and risk reporting to the Management Committee and Board, and  providing key 2nd line support to projects such as Climate Change Risk Management Framework.

Peter Telford is Financial Risk Director for pension risk transfer business and the chair of the IFoA’s risk management board

Roelof Cortez is Director for climate change policy