PREMIUM CONTENT
This is premium content, available to Connect Plus users only
Unlock this content and more with Connect Plus membership.
Join a community of professionals and get:
Join a community of professionals and get:
15% discount
on all CeFPro events.
on all CeFPro events.
Post-event access:
unlock speaker decks and audience polls.
unlock speaker decks and audience polls.
Instant insights:
Full library access the moment you sign up.
Full library access the moment you sign up.
Event Q&A
Climate Stress Tests Are Broken - Banks Must Build Their Own
Climate scenarios built for science don’t translate cleanly into finance. Central bankers are adding short-term adversity and sector detail, while banks are engineering in-house models, validation methods and narratives to turn climate risk from awareness into real decision-making. The next frontier – nature risk – demands data, geography and supply-chain insight before stress testing can be credible.
Oct 10, 2025
Lara Hall, Event Producer, Center for Financial Professionals (CeFPro)
Tags:
Stress Testing
The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization
• Early climate scenarios lack short-term adversity and sector detail
• Central bankers are adding policy and market shocks with PD and spread impacts
• Banks are building agent-based models and SSP – RCP methods to own assumptions
• Qualitative 10-year narratives guide strategy but need quantitative bridges
• Validation shifts to plausibility, traceability and explainability
• Data consistency and geolocation are prerequisites for credible analysis
• Nature risk demands localized data and supply-chain transmission mapping
• Goal is full integration of climate risk into standard stress testing
• Internal models improve ownership, transparency and decision usefulness
• The focus moves from awareness to action and integration
Log in to continue or register for free
WHAT'S INCLUDED:
Unlimited access to peer-contribution articles and insights
Global research and market intelligence reports
Discover Connect Magazine, a monthly publication
Panel discussion and presentation recordings
Sign in to view comments
Related insights —