Lenders may need to incorporate an assessment of both physical and transition risks across a range of climate-related scenarios. They may identify and simulate plausible and relevant scenarios, factor in the inter-linkages between climate-related risk and other risks and explore resilience to financial losses under a variety of scenarios.
source https://economictimes.indiatimes.com/industry/banking/finance/banking/rbis-discussion-paper-on-climate-change-calls-for-board-approved-climate-risk-management/articleshow/93165049.cms
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