27. Institutions should assess how transition and physical environmental risks propagate through …

Institutions should assess how transition and physical environmental risks propagate through relevant transmission channels, and materialise in established risk categories, including:

• a. business model and strategic risk (e.g. higher cost of risk and lower profitability); FINAL REPORT ON GUIDELINES ON ENVIRONMENTAL SCENARIO ANALYSIS
• b. credit risk (e.g. counterparties default or increased probability of default, impact on collateral values);
• c. market risk (e.g. loss of value of financial assets, increased volatility, widening of credit spreads on certain assets);
• d. liquidity risk (e.g. difficulties in accessing financing or liquidating assets, increased liquidity needs of customers); and
• e. operational risk (e.g. sudden or gradual disruptions to processes, including absence of staff and IT outages).

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA -

  EN: Guidelines and other publications of the European Banking Authority (EBA), https://www.eba.europa.eu/. © European Banking Authority. Reproduction is authorised provided the source is acknowledged (EBA legal notice). Divided into sections and converted into the GRCA format, the wording unchanged. Only the versions published by the EBA are authoritative.

  DE: Leitlinien und weitere Veröffentlichungen der Europäischen Bankenaufsichtsbehörde (EBA), https://www.eba.europa.eu/. © European Banking Authority. Wiedergabe mit Quellenangabe gestattet (Rechtlicher Hinweis der EBA). In Abschnitte aufgeteilt und in das GRCA-Format umgewandelt, der Wortlaut unverändert. Maßgeblich sind allein die von der EBA veröffentlichten Fassungen.