Understanding Climate-Related Financial Risk

Climate Risks & Resilience

What climate-related financial risk means, and why identifying it early helps price risk premia and protect asset values before they fall.

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Climate-related financial risks refer to those arising from climate change impacts or efforts to mitigate climate change. Understanding and managing these risks could help prevent or reduce a fall in financial asset values, support in pricing risk premia and preserve the resilience of the financial system.

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