Introduction to Portfolio Climate Risk Mitigation
In this video collaboration with MMF, Nobel Laureate and economist Robert Engle introduces climate financial risks - from the biggest financial shocks we have seen historically to how we measure different risk factors when they arise simultaneously. Robert then explores how we can prepare for these different scenarios using four different investor goals, all of which account for climate change.
Overview
Robert Engle sets a case for how we can use previous economic shocks to prepare for future shocks involving climate change. Using the data from V-Lab, he measures the geopolitics events with the greatest global impact and explores how to build a model that demonstrates how different volatility residuals respond. Robert then walks through the climate change risk mitigation strategies for investors.
Key learning objectives:
Understand how we can measure multiple risk factors
Learn how we can prepare for economic shocks
Identify four different goals of investing for climate change
Summary
Expert
Robert Engle
Robert Engle is a co-director of the Volatility and Risk Institute. He was awarded the 2003 Nobel Prize in Economic Sciences for his work on autoregressive conditional heteroskedasticity. He holds a Ph.D. in economics from Cornell University in New York, United States.
