Even as financial institutions face challenges

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  • 08 Sep 2020
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The Next Risk Challenge: Environmental Risk

Even as financial institutions face challenges with integrating climate risk into their established risk management practices, expectations are already expanding in Asia as regulators broaden the scope of focus beyond climate risk to include environmental risk. While Asian regulators are approaching environmental risk in different ways, Bank Negara Malaysia (BNM), the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Singapore (MAS) have all started looking at it – and in ways which could have a profound impact on how financial institutions in the region treat and manage the risk. These regulators are moving beyond a focus on climate risk management to the lens of maintaining firms’ safety and soundness, thereby reducing threats to financial stability.

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Eco-Business