Climate Risk

Building Resiliency in Risk Management

Sustainability Spotlight with Dr. Goodnight

As part of a Sustainability Spotlight series by Business Roundtable, CEO Dr. Goodnight discusses SAS’ climate strategy and how we work to make a positive impact through our sustainability initiatives.

New risks & new opportunities

New risks & new opportunities

As regulators ramp up on how to ensure the stability of the financial system from climate risks, banks need to start planning their strategies on managing these same risks. Having the proper data, processes, governance, policies, models and infrastructure in place will ensure that they not only measure and manage physical and transition risks, but also identify new business opportunities that will emerge as we head into a greener future.

How SAS can help

We envision a world where everyone can make better decisions, grounded in trusted data and assisted by the power and scale of SAS® Analytics. When decisions happen at just the right moment, advancements are set in motion and the world moves forward.

Top Resources

GARP: The Next Frontier - Addressing Climate Risk’s Biggest Analytical Challenges With AI

In the financial services industry, risks related to climate change are now considered major, resulting in all firms assessing how to incorporate climate risk in financial decision making. As we find ourselves in the decisive decade, there is an urgency for financial services to not only better manage the financial and non-financial risks of climate change but also lead the way in sustainable finance. The scale and complexity of the problem demand new thinking and new technologies that will integrate well with existing risk management ecosystems.

Risk.Net: ESG strategies Special report

ESG strategies signal progress for people and the planet. Continued interest in environmental, social, and governance (ESG) issues is driving up global sustainable fund assets. According to data from Morningstar, inflows reached the highest-ever levels in the first quarter of 2021 for the fourth quarter in a row, with European sustainable funds dominating at around 80% of net inflows. While ESG investments still represent only a small portion of overall fund assets, by 2025, ESG funds are expected to outstrip traditional funds. ...

GARP: Road to Net Zero - Using Data and Analytics for Portfolio Intelligence

Meeting the challenges of climate data collection and scenario analysis to arrive at better and smarter allocation decisions. Discussions around climate change and climate risk gained significant momentum in the past year, particularly in the lead-up to COP26, the United Nations’ climate change conference in November. As these topics climbed the agendas of top global policymakers and regulators, they have brought to bear specific challenges for financial institutions – challenges that require risk management and finance professionals’ immediate attention. ...


Recommended Resources


Impact of Net ZERO & Climate risk on bank strategies and customers

The recording of our event on Climate Risk & Net Zero Strategy on  is now available online for on-demand viewing. This is a great opportunity to get a feeling of what the leading banks & global players are thinking and planning for 2023 and beyond when it comes to addressing Increasing regulatory pressure, first climate-related losses materializing, growing interest form stakeholders and attention to portfolio decarbonization & net zero Some of the statements made during the event include:

  • 2023 will be the year of implementation for Climate Risk & Portfolio decarbonization
  • Everything we touch in our portfolios is an opportunity
  • Climate Stress Testing had taken computing power to the limits

Tune in to this 1 hour full of expert insights & discussions provided by our experts from UNEPFI, Erste Group, RBI, OeKB and SAS.


Finextra: Improving Climate Risk Forecasting

Covid, the war in Ukraine and inflation have created an unprecedented, uncertain and volatile environment that firms now need to navigate. However, one of the biggest challenges has yet to fully materialise, but already requires their focused attention today – Climate Change. ...

ARTICLE The rise of non-financial risks

Naeem Siddiqi, senior adviser, risk management, risk research and quantitative solutions at SAS, discusses the effectiveness of stress-testing as a risk management tool in rapidly changing markets, the role of new technologies in developing robust data-rich scenarios and how recent global events have highlighted the significance of non-financial risks


Roundtable: Climate Risk: A Risk Leader’s Guide to Scenario Analysis and Stress Testing

In this roundtable from the 2021 GARP Virtual Risk Convention, data and analytics experts are joined by climate leaders to share stress testing and scenario methodologies. They’ll also give advice on model risk and technologies that can help better manage climate risk.


Climate Risk: Scenario Analysis & Stress Testing

Learn in this demo: Assessing the impact of various NGFS climate scenarios on bank’s financial KPI & KRIs on portfolio / counterparty level Exploring the sensitivities to physical and transition risk drivers Attributing losses to climate scenario factors and modelling components


GARP: Modeling for Climate Risk Management – Challenges and Opportunities

As the requirements and expectations for managing the risk from climate change gets clearer, the financial industry seeks methodologies and execution details. In particular, stress testing/scenario analysis and risk models have taken center stage. In this session we explore some ways the industry is building and using models for climate risk, issues and challenges, how technology can help and how banks can use analytics to identify opportunities.


RiskMinds: Webinars

  • Climate Risk Management: Effective Planning for Green Finance and Net zero
  • Climate Risk Analytics – Creating resilient infrastructure for stress testing and modeling

ARTICLE From “New Normal” to “Better Normal”: 5 ways to create a smarter, greener future

As consultants and bankers, my industry colleagues tend to think of climate risk in terms of regulations, disclosures, models, stress testing, and dollars and cents. The global climate change crisis sometimes seems so detached from our everyday lives, as if it’s a problem can we leave at the office (or home office, as is the case for many of us today). ...

PANEL DISCUSSION ESG strategy, investment and risk

Appetite for environmental, social, and governance (ESG) funds has never been higher. Inflows exceeded $180 billion in the first quarter of 2021 – equal to the whole of 2019 – and, according to some estimates, ESG funds are set to outnumber conventional ones by 2025. A forum of industry leaders looks at how the market for ESG investing is evolving, discusses the current challenges and evaluates the latest tools and methodologies for managing ESG risk

ARTICLE Climate risk takes scenario analysis and stress-testing to the next level

Financial institutions are facing several challenges as they prepare for the transition risk journey that will see them evaluating their existing risk and finance solutions. SAS discusses what this means for scenario analysis and stress-testing in steering towards the net-zero emissions ambition


GARP: Alternative Data in Risk Modeling

In this episode, we begin a four part series looking at Responsible AI by looking at Alternative Data in risk Modeling. Over the course of the coming months we will also look at Explainable / Interpretable AI, Fairness and Bias in AI, and the new frontier of climate models.


The risks of climate change: From coffee fields to banks

Climate change is a risk for everyone. See how damages to our environment are affecting people, businesses and economies around the world – and learn how a risk management approach can help you plan for and fight back against these effects.


SAS: The business risks of climate change: Where technology and nature meet

Many people love waking up to a mug of hot coffee every morning (medium cream and a bit of sugar, please). But how many have thought ahead to when that wake-up cup of coffee might be harder to come by? Predictions show that weather patterns tied to climate change are starting to damage Brazil’s coffee business. High temperatures and sporadic rains – which can spark fast-spreading fires – could wreak havoc on picky coffee crops that need precise levels of temperature, humidity and sunlight to thrive.


GARP: What COVID-19 can Teach Companies about Climate Risk

COVID-19 is having a dramatic impact on the nature of market, credit, financial, and operational risks facing companies. Information about these risks is evolving at a rapid pace. Learn about the latest developments and how to address the challenges associated with COVID-19.


COVID to Climate Risk: Lessons in Building Resiliency in Risk Management.

As the world emerges from dealing with a COVID19 related economic downturn, we examine the similarities between this and the expected financial impact from climate change, and how banks can prepare better. Join Risk Management experts as they discuss the latest developments and provide guidance to help build a more resilient risk management framework for climate risk.

Get in touch to take the next step.