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E-grāmata: Climate Change Enterprise Risk Management: A Practical Guide to Reaching Net Zero Goals

  • Formāts: 424 pages
  • Izdošanas datums: 03-Dec-2022
  • Izdevniecība: Kogan Page Ltd
  • Valoda: eng
  • ISBN-13: 9781398608719
  • Formāts - EPUB+DRM
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  • Formāts: 424 pages
  • Izdošanas datums: 03-Dec-2022
  • Izdevniecība: Kogan Page Ltd
  • Valoda: eng
  • ISBN-13: 9781398608719

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Develop and execute a resilient climate change enterprise risk strategy that can be tailored to any organization with this essential guide for risk professionals and business leaders.

Climate Change Enterprise Risk Management equips readers with a practical roadmap for how organizations can integrate climate change into their enterprise risk strategy. It offers guidance on how to secure a robust framework that can identify and manage climate threats and opportunities for a business, how to increase the visibility of climate risk management activities at board level, and how and when to implement techniques such as thresholds, mitigation strategies, monitoring capabilities and risk appetite metrics. The book covers both existing best practice risk management tools and how they can be adapted for climate enterprise risk management as well as new interdisciplinary tools like stakeholder mapping. Climate Change Enterprise Risk Management is richly supported by global examples, interviews and case studies representing a wide range of companies and industries including the insurance, finance, infrastructure, oil and gas, legal and auditing sectors.

This is a must-read for all risk professionals and business leaders involved in developing and executing enterprise risk management and strategy. It will also be valuable reading for students taking modules on enterprise risk management and climate change, sustainable business and risk management.



Build and execute resilient risk strategies to manage the business impact of climate change and maximize new opportunities.

Recenzijas

"A must-read for anyone managing climate risk. The book is insightful, informative and a great one stop shop among a plethora of thought leadership out there on the topic. Most importantly, the book contains excellent practical guidance on how to incorporate climate risk management into existing risk management frameworks and equally, how to start from scratch. I will certainly be consulting it." * Susan Young, CRO, R&Q * "Building on the existing tools and techniques of risk management Martin Massey methodically shows the reader how to encompass and embrace the challenges that climate change will bring to us all. The book is readily accessible for those new to risk management but will also bring fresh insight to those familiar with the concepts." * Roy Boukins, Group Risk Officer, Accelerant Holdings * "Finally, here is a book which provides risk and financial professionals with a roadmap for implementing climate risk into their thinking. The book contains a host of comprehensive detail to equip readers with everything they need to achieve the business transformation that is required." * Rachel Johnson, ACCA Global * "This book provides great insight for risk managers needing to navigate the challenges of climate change, particularly during this early exploratory stage as firms start to ramp up their expertise to improve understanding of risks and opportunities." * Judith Ellison, Business Development Manager, JBA Risk Management * "This book explains in a very clear and methodically way how to integrate climate risks into an existing ERM and Governance Framework." * Alfa Falconi, Director Enterprise Risk | Governance, Risk & Compliance (GRC), NEOM * "Martin Massey has written a book which will be welcomed by the risk management community, but more importantly by their children and grandchildren as we wrestle with the changes required for a net zero future. I am confident that the book will greatly help the reader to bring climate risk into their thinking including the opportunities that climate change presents to us all." * Paul Mahon, Head of Technical Development, Cornish Mutual * "Addressing the overarching issue of how we inhabit the planet, Martin Massey's book informs and equips us superbly to develop a culture that unites everyone's positive efforts around a core consensus on climate risk. He draws together a superb array of expert insights, shows us all how to take reassuringly practical steps, and finds new opportunities for enterprise even as we engage with an existential threat." * Dr Roger Miles, Head of Faculty, UK Finance: Conduct Leaders Academy * "Building on existing tools and techniques of risk management, Martin Massey methodically shows the reader how to encompass and embrace the challenges that climate change will bring to us all. The book is readily accessible for those new to risk management but I am sure it will also bring fresh insight to those familiar with the concepts." * Derek Thrumble, Head of Analytics, Gallagher Specialty *

Acknowledgments xii
Foreword xiii
Introduction 1(5)
01 Climate change risk landscape and ERM maturity
6(24)
Introduction
7(1)
1.1 Climate change risk management enablers
8(1)
1.2 Climate change and ESG integration
9(1)
1.3 Global macro risk and climate change
10(6)
1.4 Key drivers and expectations for organizations
16(5)
1.5 Developing a climate change risk taxonomy
21(3)
1.6 Climate change integration into an existing ERM framework
24(2)
1.7 Developing a climate change risk maturity model
26(4)
Conclusion
28(1)
Notes
29(1)
02 Climate strategic positioning and risk appetite integration
30(26)
Introduction
31(1)
2.1 Corporate strategy and purpose
31(1)
2.2 Developing a climate risk strategy
32(4)
2.3 Core dimensions of climate strategy
36(3)
2.4 Developing a climate risk strategy plan and road map
39(3)
2.5 Risk appetite strategy
42(2)
2.6 Integration of climate change into risk appetite
44(10)
2.7 Climate change risk appetite reporting
54(2)
Conclusion
54(1)
Notes
55(1)
03 Developing an effective climate governance framework
56(38)
Introduction
57(1)
3.1 Role of the board in risk management
57(2)
3.2 Alignment to stakeholder expectations
59(2)
3.3 Climate change governance risk framework
61(21)
3.4 Building a good risk culture
82(4)
3.5 Integrated risk culture model
86(8)
Conclusion
92(1)
Notes
92(2)
04 Climate change risk identification techniques, including stakeholder mapping
94(30)
Introduction
95(1)
4.1 Risk identification process
95(2)
4.2 Risk articulation
97(3)
4.3 Risk universe and risk taxonomy - definitions and importance
100(2)
4.4 Risk identification processes, techniques and enablers
102(6)
4.5 Stakeholder analysis and mapping
108(12)
4.6 Framework to prioritize climate stakeholders
120(4)
Conclusion
121(1)
Notes
122(2)
05 Managing transition risks
124(38)
Introduction
125(1)
5.1 Global perspective on carbon emissions
126(1)
5.2 Sources of greenhouse gas (GHG) emissions
127(2)
5.3 Setting and achieving net zero targets - society's responses
129(4)
5.4 Global drivers of change
133(6)
5.5 Global mitigation concerns and options
139(4)
5.6 Carbon/sustainability risk management framework
143(6)
5.7 Carbon assessment process - use and availability of tools
149(1)
5.8 The carbon hierarchy
150(4)
5.9 Monitoring and reporting carbon emissions and targets
154(5)
5.10 Setting milestones of progress
159(3)
Conclusion
159(1)
Notes
160(2)
06 Building climate resilience
162(40)
Introduction
163(1)
6.1 Key climate drivers and industry impacts
164(2)
6.2 Building climate resilience
166(4)
6.3 Developing a climate resilience framework
170(7)
6.4 Climate resilience guidance and frameworks
177(2)
6.5 Organizational climate resilience process
179(6)
6.6 Specific risk management controls to improve operational climate resilience
185(11)
6.7 Building financial resilience
196(6)
Conclusion
199(1)
Notes
199(3)
07 Climate physical risks - data sources, uses and challenges
202(34)
Introduction
203(1)
7.1 Applications of weather and climate data
203(2)
7.2 Climate data and global projections
205(3)
7.3 Evolution of climate data, meteorology and climate models
208(3)
7.4 The climate data value chain
211(5)
7.5 Main climate data variables, data types and availability
216(4)
7.6 Climate data sources
220(3)
7.7 Climate data modelling tools and techniques
223(2)
7.8 Catastrophe risk modelling
225(5)
7.9 Parametric Index Solutions
230(6)
Conclusion
234(1)
Notes
234(2)
08 Designing an effective emerging climate risk management process
236(30)
Introduction
236(2)
8.1 Forecasting and the role of risk management
238(1)
8.2 Emerging risk definitions
239(2)
8.3 Traits and characteristics of emerging risks
241(1)
8.4 The role of a formal emerging risk management process
242(1)
8.5 Uses and benefits of emerging risk management
243(2)
8.6 Key objectives of developing a framework for managing emerging risks
245(2)
8.7 Current risk management guidance and standards
247(3)
8.8 Emerging risk tools and techniques
250(4)
8.9 Emerging risk management process
254(5)
8.10 Emerging climate risk reporting
259(7)
Conclusion
263(1)
Notes
264(2)
09 Emerging climate trends, issues and challenges
266(34)
Introduction
266(1)
9.1 Global macro trends
267(4)
9.2 Physical risks - emerging trends
271(11)
9.3 Transition risks - high level overview
282(2)
9.4 Climate and ESG reporting and `greenwashing'
284(3)
9.5 Emerging technologies to meet net zero targets
287(5)
9.6 Liability risks - emerging climate change litigation
292(8)
Conclusion
295(1)
Notes
296(4)
10 Climate stress and scenario testing
300(34)
Introduction
300(1)
10.1 Evolution of stress and scenario analysis - impact of financial crisis
301(1)
10.2 Developing a formal stress and scenario framework
302(1)
10.3 Design of climate scenario considerations and benefits
303(1)
10.4 Regulatory guidance and expectations
304(4)
10.5 Setting the baseline
308(1)
10.6 Climate scenario analysis framework
309(9)
10.7 Types of qualitative and quantitative tools
318(16)
Conclusion
332(1)
Notes
332(2)
11 Climate risk integration into specific business processes
334(31)
Introduction
334(1)
11.1 Alignment with business strategy
335(8)
11.2 Mapping the risk profile to business activities
343(1)
11.3 Operational risk processes
344(6)
11.4 Credit risk management
350(1)
11.5 Development of a sustainable investment strategy
351(6)
11.6 Investment strategy of investors
357(8)
Conclusion
362(1)
Notes
363(2)
12 Financial reporting and climate disclosures
365(33)
Introduction
365(1)
12.1 Climate change's evolutionary effect on how to account for risk
366(3)
12.2 The purpose of climate disclosures
369(1)
12.3 The evolution and future direction of climate-related financial disclosures
370(2)
12.4 TCFD - main disclosure requirements
372(7)
12.5 TCFD summary of recommendations and benefits for organizations
379(5)
12.6 Current main disclosure observations and trends
384(4)
12.7 Reporting disclosure information and alignment to TCFD recommendations
388(3)
12.8 Use of sensitivity analysis for transition scenarios in reporting
391(1)
12.9 Alignment with financial reporting
392(6)
Conclusion
394(1)
Notes
395(3)
Glossary 398(4)
Index 402
Martin Massey has worked for some of the leading global insurance and risk consulting firms and has over 30 years of industry experience. He is the Managing Director of OneRisk Consulting Ltd, providing Enterprise Risk Management consultancy services with a focus on climate change risk management. He is Chair of the Institute of Risk Management's (IRM) Climate Change Special Interest Group and helped to design and launch the IRM's climate change training course. Martin Massey also wrote the IRM's Climate Change Practitioners Guide in 2021. He is based in London, UK.

The IRM is a world leading professional body for risk management, driving excellence in managing risk to ensure organizations are ready for opportunities and threats of the future. They are headquartered in London, UK.