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Why Extreme Climate Physical Risks Are Closer Than You Might Think

Climate Risk Podcast

CHAPTER

The Future of Financial Modeling

I think once Europe and UK put in good regulation, we're definitely seeing the financial institutions themselves aren't changing how they measure risk. It's still loss given default and fault risk. And all their standard models, it's bringing in this weather climate risk into that. That's been the big learning journey for them. We've been trying to push this idea of a standard. What can we have one set of agreed metrics that really understand risk very well and set parameters. But certainly something we've been working towards and working with different regulators on that.

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