Difference between revisions of "Physical Risk"
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== Definition == | == Definition == | ||
| − | '''Physical Risks''' | + | '''Physical Risks''' are [[Risk Type | risks]] which arise from the physical effects of [[Climate Change]] and environmental degradation. <ref>EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18</ref> |
| − | They can be categorised either as | + | They can further be categorised either as ''Acute'' - if they arise from climate and weather-related events and an acute destruction of the environment, or ''Chronic'' - if they arise from progressive shifts in climate and weather patterns or a gradual loss of ecosystem services. |
== Examples == | == Examples == | ||
Latest revision as of 13:37, 18 March 2024
Definition
Physical Risks are risks which arise from the physical effects of Climate Change and environmental degradation. [1]
They can further be categorised either as Acute - if they arise from climate and weather-related events and an acute destruction of the environment, or Chronic - if they arise from progressive shifts in climate and weather patterns or a gradual loss of ecosystem services.
Examples
Issues and Challenges
The definitions of physical risks vary among international organisations, central banks, supervisors, policymakers and researchers
See Also
References
- ↑ EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18
