Embedding Climate Within Risk Management: A Practitioner’s Guide

Hear from Chris Howland and Lars Popken of Deutsche Bank, as we delve into the complexities of incorporating climate risk within financial institutions.

Measuring and managing the risks from climate change is often a challenge for many financial institutions, partly due to a lack of consistent data and analytical tools. As a result, many are still in the early stages of integrating climate within their day-to-day business and risk management processes. Beyond this, many have made net-zero commitments, which adds another layer of complexity to this challenge.

From their experience at Deutsche Bank, our guests will discuss the hurdles they’ve faced and share their expertise on how banks and other financial institutions can get to grips with climate risk. We'll cover a range of topics, including:

• Integrating climate into risk metrics and setting a climate risk appetite;
  
  
• Working with counterparties and preparing for a supervisory climate stress test; and
  
  
• The benefits of adopting a multidisciplinary approach to climate risk management.

For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: https://www.garp.org/sustainability-climate

If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: climateriskpodcast@garp.com

Links from today’s discussion:

• Deutsche Bank’s 2022 Non-Financial Report 
  - https://investor-relations.db.com/files/documents/annual-reports/2023/Non-Financial-Report-2022.pdf
• Summary of the European Central Bank (ECB) 2022 Climate Risk Stress Test - https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.climate_stress_test_report.20220708~2e3cc0999f.en.pdf
• NGFS climate scenarios portal 
  - https://www.ngfs.net/ngfs-scenarios-portal/
• IFRS 9 Financial Instruments 
  - https://www.ifrs.org/issued-standards/list-of-standards/ifrs-9-financial-instruments/  
  
  

Speaker’s Bio(s)

Chris Howland, Head of Enterprise Risk Portfolio Management and ESG, Deutsche Bank

Chris has responsibility for portfolio risk strategies and appetite setting across multiple dimensions including sectoral and regional, the preparation of holistic risk reporting for senior management and emerging risk analysis and reviews. He is responsible for developing the Bank’s holistic ESG risk management frameworks, working in close coordination with other Risk and Business divisions, with a particular focus on the tools and methodologies for measuring, monitoring, and controlling climate risk.

Prior to joining Deutsche Bank in 2008 Chris worked for the Bank of England. He holds an MSc in Economics and Finance from the University of York and an MA in English Literature from the University of Edinburgh.

Lars Popken, Global Head of Risk Methodology, Deutsche Bank

Lars focusses on model development activities which relate to Credit Risk Rating Methodologies, Interest Rate Risk in the Banking Book as well as Economic Capital and Stresstesting for DB Group. In the US, a specific focus area is CCAR for credit risk as well as pre-provisioning net revenues.

Prior to (re)joining Deutsche Bank in 2009, Lars worked for two years at the strategic consultancy firm Oliver Wyman. Lars holds a PhD in mathematics from the University of Kaiserslautern, Germany.