Basel climate guidance leaves op risk managers in the dark
Banks still unclear on how to fit climate events into existing capital framework
Regulatory guidance on how to fit climate-related risk into the existing capital framework has provided limited clarification for operational risk managers, who are used to applying a methodology based on past loss events.
“Climate change is not a single catastrophic event happening, it’s really many things happening more intensely and more often,” says Evan Sekeris, head of Americas non-financial risk at Japanese bank MUFG. “It’s not a risk in the sense that we talk about operational risk or
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