30 years: Macroeconomist
In the final video of his series, Amit Kara outlines the scope and objectives of a climate stress test exercise. He then summarises the climate scenarios that have been used by these central banks for their climate stress test exercises.
In the final video of his series, Amit Kara outlines the scope and objectives of a climate stress test exercise. He then summarises the climate scenarios that have been used by these central banks for their climate stress test exercises.
17 mins 42 secs
Stress tests are conducted by financial institutions or regulators to assess the resilience of financial institutions or the financial system as a whole. As banks begin to wake up to the climate crisis, they have embarked on stress tests that specifically focus on climate risks. It is vital to understand the scope and objectives of a climate stress test exercise before conducting one. Lack of action in this area or conducting a stress test too late often comes with consequences such as increased damage and costs.
Key learning objectives:
Understand the objectives and scope of a climate stress test
Comprehend the climate scenarios used by banks for a climate stress test