Overview

Identifying, assessing, and managing ESG (environmental, social, and governance) risks is now a key aspect of banks’ risk management operations. This comes against a backdrop of increased scrutiny by governments, regulators, nongovernmental organizations (NGOs), and the general public on climate change, the environment, and various socioeconomic and corporate governance issues. This eCourse provides an overview of ESG risk factors and the challenges banks face in managing them, as well as the approaches they are taking to do so. (Note that, while the impact of climate change is a significant element of ESG risk, this is covered in more detail in separate “Climate Risk” courses).

Objective

On completion of this eCourse, you will be able to:
- Identify the different types of ESG risk and need for banks to manage these risks
- Recognize the operating environment within which banks must manage ESG risk, including regulatory requirements, guidelines, and standards
- Differentiate between the E, S, and G components of ESG risk and how this impacts the way they are managed

Content

ESG Risk - An Introduction
Topic 1: Overview of ESG Risk
Topic 2: Operating Environment
Topic 3: Banks’ Approach to ESG Risk