Understanding Climate Risk in Banking: A Strategic and Financial Imperative
Climate change has evolved from being a peripheral concern to a core financial risk for the banking sector. Increasingly, banks are being called upon to recognize, quantify, and manage the impact of climate-related events — not just for reputational alignment, but to safeguard their credit portfolios, operational resilience, and long-term financial stability. At the heart of this shift are two key forms of climate risk: Physical risk , which stems from the direct impact of climate-related...
