Practitioners Course – Essen, March 27^th, 2026.

Assessment and Management of Climate Risk

Instructors:     

Professor Dr. Rüdiger Kiesel, University Duisburg-Essen, https://www.lef.wiwi.uni-due.de/team/ruediger-kiesel/

Professor Dr. Gerhard Stahl, HDI, Hannover, https://lef.wiwi.uni-due.de/team/gerhard-stahl/

Content

The effects of global warming and other aspects of climate change pose substantial risks to financial markets. The understanding of the complexity of these risks and their possible impacts is key to the stability of the financial system. However, up to now the risk management approach advocated by regulators and applied by financial institutions is capital-based and modelled as in traditional credit- and operational risk frameworks. We explain reasons for a differing approach on climate risk and propose a classificationframework, which is based on a resilience rather than a capital-based risk management approach. As this framework uses the concept of net-zero emissions and carbon budgets we discuss these concepts and relate them to current developments on financial markets.

9:00 - 9:15 Rüdiger Kiesel and Gerhard Stahl: Setting the Tone!

9:15 – 10:45 Gehard Stahl: From Robustness to Resilience – The Change of Paradigm in Risk Management

Robust risk management for climate risk

Risk Management in a VUCA world

Resilience-based risk management for climate risk 

11:15 – 12:45 Rüdiger Kiesel: Net-Zero Commitments and Carbon Budgets

How to measure climate risk? Data and methods

Climate risk measures: Carbon intensity, carbon budgets, greenness measures

Disclosure of climate risk

Credibility of net-zero commitments

13:00 – 14:00 Lunch Break 

14:00 – 15:30 Rüdiger Kiesel: Using Large Language Models to Assess Climate Risk

An introduction to LLMs

Using LMMs to assess climate risk disclosure

Using LMMs to assess net-zero commitments

Pitfalls in using LLMs

15:45 – 16:45 Rüdiger Kiesel: Climate Risk and Credit Risk 

Understanding physical and transition carbon risk

An overview of key factors driving transitional and physical climate risks

Credit risk modelling with climate risk factors

Climate stress-testing with NGFS scenarios

16:45 – 17:15 Gehard Stahl: How to think about Risk and not the Rules

For a little preview of the topics feel free to watch our podcast.