Read our insights

The EBA will integrate ESG risks considerations into its framework over the next three years to support the EU's transition to a more sustainable economy. Read more

The report highlights the main updates made to integrate the climate models in order to reflect the most recent climate data and economic outlook on macroeconomic variables, used as part of the models, and consequently, on both physical and transition risks.

Summarising the NGFS directory for bridging climate related data gaps, overcoming limitations, and proposed policy recommendations to support the needs of the financial sector.

Understanding NGFS released data, exploration of scenarios and their impact, and leveraging on globally accepted solutions for the quantification of climate and environmental risks.

On July 8th, 2022, the European Central Bank (ECB) published the results of the Biennial Thematic Stress Test 2022 related to climate change. The exercise focused on climate-related risks, both transitional and physical.

Grant Thornton has constructed a Physical Risk Quantification Framework in its effort to support financial institutions in identifying and measuring their Climate & Environmental Risks. In this publication, we present our methodology, implementation, and key benefits of the framework.

This paper will provide an overview of the current and future uses of Machine Learning in the world of Internal Rating Based (IRB) Models which allow banks to model their own inputs for calculating Risk Weighted Assets.

EBA published, on the 21st of June 2022, draft principles in assessing representativeness of COVID-19-impacted data in re-calibration of IRB models. The Supervisory handbook that will be published later in 2022 will include these principles, aiming at ensuring a harmonised approach. COVID events and especially the use of moratoria and other public measures may have led to changes in default rates.

The EBA Annual Report was published on the 15th of June 2022, highlighting the main achievements made in 2021, providing an overview of the key priorities for the coming year.

The global economic crisis that resulted as a consequence of the pandemic has stressed the relevance of prioritising sustainability pillars within financial services.

The global economic crisis that resulted as a consequence of the pandemic has stressed the relevance of prioritising sustainability pillars within financial services.

On October 18th, 2021 ECB published its report regarding the 2022 thematic stressed test focusing on climate risk. The 2022 climate risk stress test exercise is considered to be a joint learning exercise with pioneering characteristics, that will be conducted from March 2022 to July 2022.

The European Central Bank (ECB) has provided guidance to financial institutions in order to disclose and manage climate change-related and environmental risks within an organisation. As of November 2020, ECB published the final guide on climate-related and environmental risk with supervisory expectations relating to risk management and disclosure.

Following the uncertainty arising from the current economic shock, prudential and securities regulators have published guidelines for the application of IFRS 9 in the context of the COVID-19 pandemic.