ESG risks have firm-wide implications and can potentially impact on a bank’s business strategy, product suite, and the long-term robustness of the organisation. However, understanding and integrating ESG risk factors is still relatively new for banking risk managers.
This eCourse explores the strategic integration of ESG risk factors into a bank’s risk control framework, including the differences compared to standard risk management practices and the challenges of aligning business strategy and risk appetite with ESG ambitions and constraints.
On completion of this course, you will be able to:
- Recognise how banks are progressively aligning their business strategies to the set of ESG risk factors that have emerged in recent times
- Identify the standard approach to embedding ESG risk factors into bank risk management frameworks, including into three lines of defense models and the use of tools such as heat maps and KRIs
- Identify the key factors that make ESG risks different and challenging for bank executive teams
- Recognise the role of the board in supporting ESG risk management throughout the bank
ESG Risk Management – Strategic Integration
Topic 1: Integrating ESG Risks
Topic 2: Integration Techniques
Topic 3: Identifying & Measuring ESG Risks
Topic 4: Role of the Board