Cascading Climate Financial Risks
On March 21 and 22, the 15th International Risks Forum was held in Paris, organized by the Louis Bachelier Institute, in partnership with many private and public players, including EDHEC Risk Institute (associate partner). Hosted by the Paris Chamber of Commerce and Industry, this event on the theme of "Climate Risk and Green Transition" brought together nearly 300 people to listen to and exchange views with some 100 speakers.
Irene Monasterolo, Professor of Climate Finance, EDHEC-Risk Institute, EDHEC Business School, gave a keynote speech on the theme of "Cascading climate risks: an asset level financial approach". She presented her new paper "Asset-level climate physical risk assessment and cascading financial losses" co authored with Giacomo Bressan, Anja Đuranović, and Stefano Battiston. They develop a methodological framework for asset-level climate physical risk assessment that connects for the 1st time asset-level information (financial, extra- financial and climate) to firms’ business lines, macroeconomic dynamics, financial valuation and investor’s risk.
She also took part in a roundtable session "The Future of Futures: Designing and Using Climate Macro-Financial Scenarios" with Laurent Clerc (ACPR) Jean Boissinot (Banque de France), Marc Irubetagoyena (BNP Paribas), and Christoffer Kok (ECB).
About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
