U.K. central bank embarks on stress-testing climate risk

first_img How should banks allocate capital for crypto? James Langton Incentive conflicts, regulatory burdens on AMF agenda dollar boat in the bad weather illustration economic instability solerf/123RF Insurance regulators consult on conduct principles The Bank of England (BoE), which has been at the forefront of understanding climate change as a financial stability risk, is launching industry stress-testing for climate risks.The U.K.’s central bank published a discussion paper on Wednesday that sets out a proposed stress-testing framework that will examine the resilience of the country’s largest banks and insurers to the physical and transition risks of various climate scenarios, as well as the overall financial system’s exposure to climate-related risk. Share this article and your comments with peers on social media “The [climate stress test] is a pioneering exercise, which builds on the considerable progress in addressing climate related risks that has already been made by firms, central banks and regulators,” BoE governor Mark Carney said in a statement.“Climate change will affect the value of virtually every financial asset; the [stress test] will help ensure the core of our financial system is resilient to those changes,” he added.The proposed approach will model three different climate scenarios over a 30-year time horizon, based on whether action to combat climate change is taken soon, later or not at all. It will incorporate a “bottom up, granular analysis” of firms’ business models in an effort to accurately capture their exposure to climate-related risks.The BoE said that it will publicly report on the overall financial system’s resilience to climate-related risks, but not its findings for individual firms.“None of us can know exactly how climate change will unfold, but we do know that it will create risks to the financial system. I am excited that this ground-breaking exercise will for the first time allow us to quantify this risk and so determine the actions we need to take today if we are to minimise these future risks,” said Sarah Breeden, executive director sponsor for climate change at the BoE.The proposed stress testing framework is out for consultation until March 18, 2020.The final framework will be published in the second half of 2020, and the exercise’s results will be released in 2021. Related news Keywords Climate change,  Banking industry,  Insurance Facebook LinkedIn Twitterlast_img read more

Read More

People / Sam Addeo appointed new chief technology officer at BluJay Solutions

first_imgBy Gavin van Marle 08/06/2020 BluJay Solutions has appointed Sam Addeo (pictured above) as its new chief technology officer.Most of Mr Addeo’s 25-year career has been spent solving supply chain issues, and most recently he was senior vice president and chief development officer at solutions provider Aptos, where he led development resources in multiple countries and time zones to build commerce solutions for some of the world’s leading retail brands.“Sam brings with him the experience of leading and working with teams distributed around the globe, using the latest development techniques to effectively build complex solutions,” said Andrew Kirkwood, BluJay chief executive.Mr Addeo said: “BluJay is demonstrating remarkable momentum as a business; I am really excited about the DNA strategy and doing some innovative things to further unlock the potential of the data and the network that BluJay possesses. “I enjoy the challenge of applying technology to solve real-world business challenges. One of the things that I like about the supply chain is the complexity of the problems, and the ability to see your solutions have an impact.“I’m thrilled to join the team and work together to deliver solutions that give BluJay customers a business advantage,” he added.He has previously held leadership positions at Intelligrated, a division of Honeywell, and spent 14 years at Manhattan Associates as part of the senior management team for R&D for multiple products and technologies.last_img read more

Read More