Significant business risk derives from the likelihood that the policy and legal environment with respect to climate …. Advice on how to manage this kind of risk is written largely on a tabula rasa; there is precious little "law" on climate … disclosures law in the United States and Canada. The most dangerous policy risk faced by Canadian businesses stems ironically from …

substantial impact of doing so. In short, the risk climate can and should be incorporated in a stress test. Second, we provide a … to a trade-off between the competing objectives of minimizing risk and maximizing return. We achieve this with a scenario …-constrained mean-variance optimization that can incorporate extreme risk and other non-Gaussian effects. We illustrate our methods in …

now than ever, only a financial mechanism can scale up capital to such an extent. However, climate risk represents the …-term investors by directly modelling the dynamics of the GMST. The evaluation of climate risk requires a model incorporating the … function, and include stochastic processes representing additional risk. We obtain a bivariate Ornstein-Uhlenbeck process and …

-carbon economy, namely, orderly transition, disorderly transition, and no transition (hot house world). We describe three systemic … risk metrics computed from a copula-based model of dependence between financial firm returns and financial asset market … returns: climate transition expected returns, climate transition value-at-risk, and climate transition expected shortfall …

. Specifically, we introduce a measure called CRISK, systemic climate risk, which is the expected capital shortfall of a financial … institution in a climate stress scenario. We use the measure to study the climate-related risk exposure of large global banks in …

; (iii) a novel set of climate-specific models to capture the direct and indirect transmission channels of climate risk …