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Climate Scenario Analysis & Stress Testing

Climate Scenario Analysis & Stress Testing

1 Weeks
Professional Level
Certificate Included
Course Content

Available Events

Available Events
CityDatePriceStatus
AmsterdamNetherlands
September 28, 2026
€4,600
Confirmed date
IstanbulTurkey
September 30, 2026
€3,900
Confirmed date
GenevaSwitzerland
October 10, 2026
€4,600
Confirmed date
ParisFrance
October 25, 2026
€4,600
Confirmed date
Kuala LumpurMalaysia
November 3, 2026
€4,400
Confirmed date
SingaporeSingapore
November 6, 2026
€4,800
Confirmed date
OnlineOnline
November 13, 2026
€1,790
Confirmed date

Course Information

Duration

1 Weeks

Category

ESG & CLIMATE CHANGE

Level

Professional Level

Certificate

Included

INTRODUCTION

Climate change creates complex financial and operational risks that may develop across different regions, sectors, and time horizons. Traditional risk assessments often rely on historical data that may not adequately represent future climate conditions. Climate scenario analysis helps organizations explore plausible futures rather than predict one specific outcome. Stress testing evaluates how severe but credible climate conditions could affect financial performance, resilience, and strategic objectives. Effective analysis requires clear governance, reliable data, transparent assumptions, and appropriate analytical methods. Organizations must consider acute physical hazards, chronic environmental changes, policy transitions, market disruption, and technological transformation. Financial institutions and corporations increasingly use climate stress testing to support risk appetite, portfolio management, investment decisions, and regulatory engagement. This course translates complex climate risk concepts into practical processes that participants can apply within their organizations. It combines strategic analysis, financial assessment, model review, and executive communication to support informed climate-related decision-making.

COURSE OBJECTIVES

Participants will achieve the following objectives by this course:

  • Explain the purpose and limitations of climate scenario analysis and stress testing.
  • Distinguish physical climate risks from transition risks and associated financial impacts.
  • Select credible climate scenarios, pathways, assumptions, and analytical time horizons.
  • Identify material climate risk drivers across sectors, portfolios, assets, and operations.
  • Translate climate variables into credit, market, liquidity, operational, and strategic impacts.
  • Design qualitative and quantitative climate stress-testing frameworks for organizational use.
  • Evaluate data quality, model uncertainty, assumptions, limitations, and validation requirements.
  • Interpret stress-testing results and identify vulnerabilities, opportunities, and management actions.
  • Integrate climate analysis into risk management, strategy, capital planning, and governance.
  • Communicate climate scenario findings through clear reports, dashboards, and executive recommendations.

TARGET AUDIENCE

This program targets a professional audience seeking to improve knowledge and skills:

  • Risk managers responsible for enterprise, financial, operational, credit, market, or climate-related risk frameworks.
  • Sustainability professionals integrating climate risks, opportunities, resilience, and transition planning into corporate strategies.
  • Banking and insurance specialists conducting portfolio analysis, capital assessment, underwriting, and regulatory stress testing.
  • Finance and investment professionals evaluating climate exposures, asset valuations, lending decisions, and long-term performance.
  • Internal auditors, compliance officers, and governance professionals reviewing climate controls, models, assumptions, and disclosures.
  • Strategy, planning, and business continuity leaders assessing resilience across operations, assets, and supply chains.
  • Regulators, policymakers, and public-sector professionals developing climate supervision, reporting, and financial stability requirements.
  • Consultants, analysts, and executives supporting climate risk decisions, scenario design, and stakeholder communication.

COURSE OUTLINE

Day 1: Climate Risk Foundations and Scenario Analysis Principles

  • Climate science fundamentals and implications for organizational risk management.
  • Physical, transition, liability, and reputational climate risk categories.
  • Acute hazards and chronic environmental changes affecting organizations.
  • Purpose, scope, and limitations of climate scenario analysis.
  • Differences between scenarios, forecasts, projections, and sensitivity analyses.
  • Major climate pathways and socioeconomic development assumptions.
  • Short, medium, and long-term analytical time horizons.
  • Linking climate risks with enterprise risk management frameworks.

Day 2: Scenario Selection, Design, and Materiality Assessment

  • Criteria for selecting credible and decision-relevant climate scenarios.
  • Designing orderly, disorderly, delayed, and high-warming transition pathways.
  • Identifying climate variables, policy assumptions, and technology developments.
  • Mapping sector, geography, asset, customer, and supply-chain exposures.
  • Conducting climate risk materiality and vulnerability assessments.
  • Establishing baseline conditions and counterfactual business assumptions.
  • Defining scenario severity, probability, scope, and analytical boundaries.
  • Documenting assumptions, judgments, sources, and scenario limitations.

Day 3: Climate Stress Testing and Financial Impact Modelling

  • Translating climate variables into economic and financial risk drivers.
  • Assessing credit risk, defaults, collateral values, and portfolio losses.
  • Evaluating market risk, asset repricing, volatility, and valuation impacts.
  • Examining liquidity, funding, insurance, and operational risk effects.
  • Modelling revenues, costs, capital expenditure, and profitability impacts.
  • Applying qualitative, quantitative, top-down, and bottom-up methodologies.
  • Developing stress-testing models, templates, and calculation processes.
  • Managing data gaps through proxies, estimates, and expert judgment.

Day 4: Governance, Model Validation, and Risk Management Integration

  • Establishing board and executive accountability for climate stress testing.
  • Defining roles across risk, finance, sustainability, strategy, and audit.
  • Developing data governance, quality controls, and ownership responsibilities.
  • Reviewing model assumptions, methodologies, sensitivity, and performance.
  • Conducting independent validation and effective management challenge.
  • Integrating results into risk appetite and control frameworks.
  • Linking climate findings with capital, liquidity, and contingency planning.
  • Monitoring emerging climate risks, indicators, and scenario developments.

Day 5: Results Interpretation, Disclosure, and Strategic Response

  • Interpreting stress-testing outputs and identifying material vulnerabilities.
  • Prioritizing risk mitigation, adaptation, transition, and resilience actions.
  • Evaluating strategic opportunities under alternative climate pathways.
  • Developing portfolio, investment, insurance, and operational responses.
  • Preparing executive dashboards and decision-focused climate risk reports.
  • Communicating uncertainty, assumptions, limitations, and confidence levels.
  • Aligning climate analysis with governance and disclosure requirements.
  • Creating an organizational implementation roadmap and action plan.

COURSE DURATION

Duration: 1 Weeks

This intensive professional program is delivered over five training days and combines expert instruction, practical exercises, scenario design workshops, financial modelling activities, sector case studies, group discussions, stress-testing simulations, and implementation planning to build strategic understanding and practical analytical capability.

INSTRUCTOR INFORMATION

The course is delivered by an internationally certified expert with extensive practical and consulting experience in climate risk management, scenario analysis, financial stress testing, sustainability strategy, banking and insurance risk, quantitative modelling, governance, regulatory expectations, and climate-related financial disclosure.

FREQUENTLY ASKED QUESTIONS

No, it develops the required concepts and methods progressively through practical applications.

CONCLUSION

Climate scenario analysis enables organizations to assess resilience across a range of plausible and challenging future conditions. Stress testing transforms climate risks into measurable financial, operational, and strategic consequences. This course equips participants with practical methods for scenario selection, impact modelling, governance, validation, and results interpretation. It also strengthens their ability to communicate uncertainty and recommend credible management actions. Participants complete the program prepared to embed climate analysis within decision-making, planning, risk management, and organizational resilience.

Climate Scenario Analysis & Stress Testing

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