Banks’ Climate Change Risk Management Certification (CCRM)

Module 1: Climate Data Management (Week 1-2)

• Learning Objectives: Upon completion of this module, participants will be able to:
  • Define Climate Risks & Their Impact on Banking: Understand the diverse types of climate risks (physical, transition, liability, and reputational) and their potential impact on banking portfolios.
  • Data Sources & Collection: Identify and evaluate key data sources for climate risk assessment .
  • Data Quality & Validation: Implement processes for ensuring the accuracy, completeness, and reliability of climate data.
  • Data Standardization & Integration: Understand the challenges of integrating climate data into existing banking systems and explore data standardization initiatives
  • Data Governance Frameworks: Establish a basic framework for data governance, including roles, responsibilities, and data quality controls.
• Activities:
  • Exercises on identifying data requirements from relevant requirements, their sources and linking them with data maps.
  • Creation of Quality assessment framework covering validation metrics and controls

Module 2: Climate-Related Financial Risk Measurement & Management (Week 3-4)

• Learning Objectives: Upon completion of this module, participants will be able to understand the full life cycle of Climate Related Financial Risk Management:
  • Setting Climate Risk Appetite: Understand how to incorporate climate risk into the bank’s risk appetite framework through a well articulated Risk Appetite Statement.
  • Risk Identification and Assessment – Understand the nuances of identifying and assessing Financial risks related to climate change
  • Risk Measurement, Scenario Analysis and Stress Testing: Understand measurement approaches including scenario analysis. Aspects to consider for  portfolio stress tests to identify vulnerabilities .
• Activities:
  • Drafting a Climate Risk Appetite statement for a mid sized bank and the rationale there of.
  • Identifying the interlinks -Impact of physical and Transition risks on Credit, Market and Liquidity Risks

Module 3: Climate Disclosures & Regulatory Reporting (Week 5 & 6)

• Learning Objectives: Upon completion of this module, participants will be able to:
  • Regulatory Reporting Requirements: Analyze regulatory reporting requirements related to climate risk including Task Force on Climate-related Financial Disclosures (TCFD) and GRI .
  • Climate Disclosure Standards: Explore emerging climate disclosure standards (e.g., IFRS Sustainability Disclosure Standards) and their implications for banks.
  • Reporting Processes & Documentation: Implement processes for collecting, analyzing, and reporting climate-related information.
• Activities:
• Exercise – Identification of important components of ISSB S2 reporting  and how that information can be sourced.
• Group  Note on regulatory reporting challenges and how they can be addressed.

Module 4: Creating an Effective Operating Framework (Week 7 and 8)

• Learning Objectives: Upon completion of this module, participants will be able to:
  • Design a Climate Risk Management Operating Framework: Develop a comprehensive framework outlining roles, responsibilities, processes, and governance structures for managing climate-related financial risks.
  • Integration with Existing Risk Management Systems: Identify opportunities to integrate climate risk management into existing risk management systems and processes.
  • Technology & Innovation: Explore emerging technologies (e.g., AI, machine learning) that can support climate risk management.
  • Monitoring & Improvement: Establish processes for monitoring the effectiveness of the framework and identifying areas for improvement.
• Activities:
  • Design a climate risk management operating framework for a hypothetical bank; Presentation and feedback on framework designs;.
  • Identifying top 3 to 5 future trends (Near Term  1 to 3 Years) in the Climate Change Risk Management for Banks and possible proactive steps banks can take