+5. Development of environmental scenario analysis
---+5.1. Transmission channels
------+22. Institutions should identify, through observation and judgement, the most relevant transmission …
------+23. Institutions should identify reliable data sources, apply transparent methodologies, and …
------+24. To identify environmental transmission channels, institutions should identify relevant risk …
------+25. Institutions should assess the extent to which their counterparties may be indirectly exposed …
------+26. According to the time horizon of the analysis, institutions should consider potential risk …
------+27. Institutions should assess how transition and physical environmental risks propagate through …
---+5.2. Scenarios
------+28. When setting scenarios involving environmental risks, institutions should consider …
------+29. For climate risks, the additional following factors should be considered: a. climate policies …
------+30. For other environmental risks (beyond climate), the additional following factors should be …
------+31. Institutions should use credible scenarios, based on the most recent scientific knowledge, and …
------+32. Institutions should refine and customise the chosen scenarios based on the objective, scope and …
------+33. Institutions should ensure that the scenarios are well aligned with the unique risk …
------+34. Where a scenario does not include some of the elements listed in paragraphs 29 and 30 …
------+35. When setting scenarios, institutions should consider both physical risk and transition risk. …
------+36. Institutions should select the specific aspects of transition risk and physical risk hazards to …
------+37. Institutions should ensure that scenarios are internally consistent. In particular, the …
------+38. In application of the proportionality principle, institutions may initially, or depending on …
---+5.3. Sensitivity analysis
------+39. In developing scenario analysis, institutions may consider using sensitivity analysis as a …
------+40. Additionally, institutions may use sensitivity analysis to explore emerging risks (e.g. nature …
|
5. Development of environmental scenario analysis
5. Development of environmental scenario analysis
1. Overview
1.1 References
1.2 Identified Requirements
1.3 Related Standards
2. Identified Requirements
Requirements
| Source |
Requirement |
3. Related Standards
Standards
| Source |
Requirement |
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
|