// Sustainable & Green Finance

Climate Risk

Assess climate exposure across your portfolio and operations in terms your risk function can use.

Physical and transition risk assessment, scenario analysis and integration into credit, investment and enterprise risk processes.

Discuss your requirements Speak with an expert

// Context

Why this matters

For financial institutions, climate risk is a credit, market and operational risk question. It affects the creditworthiness of borrowers, the value of collateral, the performance of investments and the continuity of operations.

Supervisory expectations across Asia have moved toward requiring institutions to identify, measure and manage these exposures within existing risk frameworks, and to be able to demonstrate how.

The practical difficulty is translation. Climate analysis produces outputs in a form that risk and credit functions do not use, over horizons longer than they usually assess. Making it decision-useful means expressing exposure in terms already embedded in the risk framework.

// The engagement

How CER helps

Physical risk assessment -- acute and chronic hazards against asset and counterparty locations
Transition risk assessment -- policy, carbon pricing, technology and market exposure
Sector and geography exposure mapping across the portfolio
Heat mapping of counterparties by climate sensitivity
Scenario analysis design and selection
Time-horizon framing across short, medium and long term
Integration into credit assessment and investment processes
Risk appetite and limit-setting support
Climate risk indicators and monitoring
Disclosure support for climate-related risk reporting

// Deliverables

What you receive

Portfolio climate exposure assessment by sector and geography
Physical and transition risk heat map
Scenario analysis results and interpretation
Recommended integration points into credit and investment process
Climate risk indicators with thresholds
Risk appetite considerations
Disclosure-ready climate risk narrative

// Fit

Who this is for

Banks assessing climate exposure in lending portfolios
Asset managers and asset owners assessing portfolio exposure
Insurers assessing underwriting and investment exposure
Corporates assessing physical risk across sites and supply chains

// Why CER

Practitioners, not report writers

CER works from Singapore with organisations across Asia, which matters for this service because requirements arriving from European regulators, regional supervisors and local listing rules do not align neatly.

Engagements run through to implementation: the data collection process, the documentation, the controls and the internal handover, so that the second cycle is cheaper than the first and can be run without us.

Where an organisation would be better served by building the capability internally, CER Academy delivers the same technical material as training.

Meet the people behind the work

// Our people

Expertise on this service

Raymond Cheung

Advisor & Lead Trainer

Over twenty years in actuarial science and risk management, working across ESG, sustainability and ESG investment.

Actuarial science · Risk management · ESG and sustainability

View Raymond Cheung’s profile

// Questions

Frequently asked

What scenarios should we use?

Scenario selection depends on the purpose and the audience. Supervisory expectations, sector norms and the decision the analysis is meant to inform all bear on it. Running several scenarios matters more than selecting a single correct one -- the value is in the spread of outcomes.

How does climate risk differ from ESG risk?

Climate risk is a subset. ESG risk covers a wider set of environmental, social and governance exposures. Climate has moved ahead of the rest in regulatory attention and methodology maturity.

Our risk horizon is three years. Is climate risk relevant?

Yes, particularly transition risk. Policy change, carbon pricing and market shifts operate on shorter horizons than physical climate impacts, and can affect counterparty creditworthiness well within a standard risk horizon.

Do we need external data providers?

Physical risk analysis generally requires hazard data, and portfolio-level analysis often requires sector or emissions data. We assess what is genuinely needed rather than defaulting to a subscription.

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