The Basel Committee on Banking Supervision recently published principles for effective management and supervision of climate-related financial risks, following a public consultation on the draft some months ago. The 18 principles are meant to foster a common global understanding of supervisory expectations related to climate risk. The guidance and topics covered include:
Corporate governance
Internal control framework
Capital and liquidity adequacy
Risk management process
Management monitoring and reporting
Comprehensive management of credit risk
Comprehensive management of market, liquidity, operational and other risks
Scenario analysis
Prudential regulatory and supervisory requirements for banks
Responsibilities, powers and functions of supervisors
Click to acces this publication and the 18 principles.
