Auronova Consulting

As climate change accelerates, physical risks like flooding are becoming more frequent, severe, and financially material. For banks, these are not just operational disruptions — they can trigger liquidity stress, asset impairments, and even off-balance sheet losses. Flooding is no longer a remote environmental concern. It is now a financial risk event that can reverberate through a bank’s entire balance sheet, challenging risk teams, ALM desks, and executive committees alike. Liquidity at...

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...