15 January 2026 - 27 February 2026

E-Learning

Host: FSI via the Climate Training Alliance (CTA) Portal

Effective Management and Supervision of Climate-related Financial Risks

Description

The Basel Committee on Banking Supervision (BCBS) considers that climate-related financial risks materialise through the traditional financial risk categories (such as credit, market and operational risks) and, therefore, can be addressed within the existing Basel Framework. In its various publications, BCBS has outlined how the existing frameworks can be adapted to address climate-related financial risks. The Basel Core Principles for Effective Banking Supervision, last revised in April 2024, require banks to effectively manage, and supervisory authorities to supervise climate-related financial risks.  The Network for Greening the Financial System (NGFS) works extensively on climate and nature-related financial risks with dedicated workstreams for supervision and Scenario Design and Analysis. While several jurisdictions have implemented the disclosure standards, the BCBS framework on disclosure of climate-related financial risk is voluntary in nature. The International Sustainability Standards Board (ISSB) has issued two standards: IFRS S1- General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2-Climate-related Disclosures.

Objectives

This e-Course on “Regulation and Supervision of Climate Risk and Disclosure Standards” will enable the participants to enhance their knowledge in the following areas:

  • Integration of climate-related and environmental risks into prudential supervision.
  • Assessment of climate-related risk transmission channels and formulation of supervisory expectations for banks on how to manage the risks
  • Variability of the risk drivers that make it difficult to quantify potential losses from bank loan book exposures
  • Types of transition plans and their relevance for micro-prudential supervision
  • Tools and processes involved in conducting climate scenario analysis and the associated challenges
  • Sustainability disclosures based on IFRS S1 and IFRS S2 reporting standards

Target Participants

Target participants for the e-learning course are expected to be working in the regulation or supervision department of the central banks with 3 or more years of experience in related areas. After completion of all the modules in the e-learning course within the allocated 6 weeks’ time period, participants will receive a certificate of completion of the e-learning course from the SEACEN Centre.

Resource Persons

The course is curated by the Financial Stability Institute (FSI).

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