TopQuants

Helga Koo

DNB

Climate Risk Stress Testing at DNB

Even though climate risk is high on the financial sector’s agenda, quantifying climate risk is still a major challenge. With a view to promoting financial stability, DNB is therefore investing in the further development of stress test models for climate risks. This presentation takes a closer look at a number of recent applications by DNB, looking at the way in which climate risks can materialize through the real estate exposures of financial institutions. These applications address both physical climate risks and transition risks.