Climate Change Risks in Financial Business

The article is aimed at identifying, firstly, the features and the ways in which climate change influences the profile of financial business, and secondly, financial risks modification while taking into account climate change risks. Climate change is global, it causes new challenges for corporations...

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Autores principales:	Krasnova Iryna V., Prymostka Liudmyla O., Lavreniuk Vladyslav V.
Formato:	article
Lenguaje:	EN RU UK
Publicado:	PH "INZHEK" 2021
Materias:	climate properties of climate-related risks physical risks transit risks financial risks financial innovations green bonds catastrophe bonds Finance HG1-9999 Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/9c6ab75a3c9745be8e0c46cd5783496b
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id	oai:doaj.org-article:9c6ab75a3c9745be8e0c46cd5783496b
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spelling	oai:doaj.org-article:9c6ab75a3c9745be8e0c46cd5783496b2021-11-05T07:31:13ZClimate Change Risks in Financial Business10.32983/2222-0712-2021-3-140-1462222-07122311-1186https://doaj.org/article/9c6ab75a3c9745be8e0c46cd5783496b2021-09-01T00:00:00Zhttps://www.problecon.com/export_pdf/problems-of-economy-2021-3_0-pages-140_146.pdfhttps://doaj.org/toc/2222-0712https://doaj.org/toc/2311-1186The article is aimed at identifying, firstly, the features and the ways in which climate change influences the profile of financial business, and secondly, financial risks modification while taking into account climate change risks. Climate change is global, it causes new challenges for corporations, financial institutions and central banks, and for economy, as a whole. Statistics on the scale of the threatening impact produced by climate-re;ated risks on economy and its financial sector are presented. It is noted that the aggregate impact of climate change risks significantly exceeds the losses from the financial markets collapse. In particular, due to the natural disasters in 2020, the world economy suffered losses of about US$ 200 billion. The properties of climate-related risks are systematized and generalized, including the following: unpredictability, radical uncertainty, complex dynamics, chain effect, irreversibility, nonlinearity. Due to the high level of uncertainty, the problem of integrating climate change risks into the risk management system of financial institutions remains particularly complex. The ways in which risks generated by global climate change transform into financial risks are determined. It is noted that, despite the threatening impact of damage caused by extreme weather events and climate catastrophes, the management of these risks is still characterized by a low level of penetration into the system of risk-oriented management of financial institutions. In order for the financial business to effectively manage risks taking into account climate change, innovative approaches of strategic importance have been suggested, namely, green bonds and disaster bonds. The financial stability and sustainable dynamic development of economy will depend on the performance of financial institutions in implementing their policies in this area.Krasnova Iryna V.Prymostka Liudmyla O. Lavreniuk Vladyslav V. PH "INZHEK"articleclimateproperties of climate-related risksphysical riskstransit risksfinancial risksfinancial innovationsgreen bondscatastrophe bondsFinanceHG1-9999Economics as a scienceHB71-74ENRUUKProblemi Ekonomiki, Vol 3, Iss 49, Pp 140-146 (2021)
institution	DOAJ
collection	DOAJ
language	EN RU UK
topic	climate properties of climate-related risks physical risks transit risks financial risks financial innovations green bonds catastrophe bonds Finance HG1-9999 Economics as a science HB71-74
spellingShingle	climate properties of climate-related risks physical risks transit risks financial risks financial innovations green bonds catastrophe bonds Finance HG1-9999 Economics as a science HB71-74 Krasnova Iryna V. Prymostka Liudmyla O. Lavreniuk Vladyslav V. Climate Change Risks in Financial Business
description	The article is aimed at identifying, firstly, the features and the ways in which climate change influences the profile of financial business, and secondly, financial risks modification while taking into account climate change risks. Climate change is global, it causes new challenges for corporations, financial institutions and central banks, and for economy, as a whole. Statistics on the scale of the threatening impact produced by climate-re;ated risks on economy and its financial sector are presented. It is noted that the aggregate impact of climate change risks significantly exceeds the losses from the financial markets collapse. In particular, due to the natural disasters in 2020, the world economy suffered losses of about US$ 200 billion. The properties of climate-related risks are systematized and generalized, including the following: unpredictability, radical uncertainty, complex dynamics, chain effect, irreversibility, nonlinearity. Due to the high level of uncertainty, the problem of integrating climate change risks into the risk management system of financial institutions remains particularly complex. The ways in which risks generated by global climate change transform into financial risks are determined. It is noted that, despite the threatening impact of damage caused by extreme weather events and climate catastrophes, the management of these risks is still characterized by a low level of penetration into the system of risk-oriented management of financial institutions. In order for the financial business to effectively manage risks taking into account climate change, innovative approaches of strategic importance have been suggested, namely, green bonds and disaster bonds. The financial stability and sustainable dynamic development of economy will depend on the performance of financial institutions in implementing their policies in this area.
format	article
author	Krasnova Iryna V. Prymostka Liudmyla O. Lavreniuk Vladyslav V.
author_facet	Krasnova Iryna V. Prymostka Liudmyla O. Lavreniuk Vladyslav V.
author_sort	Krasnova Iryna V.
title	Climate Change Risks in Financial Business
title_short	Climate Change Risks in Financial Business
title_full	Climate Change Risks in Financial Business
title_fullStr	Climate Change Risks in Financial Business
title_full_unstemmed	Climate Change Risks in Financial Business
title_sort	climate change risks in financial business
publisher	PH "INZHEK"
publishDate	2021
url	https://doaj.org/article/9c6ab75a3c9745be8e0c46cd5783496b
work_keys_str_mv	AT krasnovairynav climatechangerisksinfinancialbusiness AT prymostkaliudmylao climatechangerisksinfinancialbusiness AT lavreniukvladyslavv climatechangerisksinfinancialbusiness
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Climate Change Risks in Financial Business

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