The heat is on

Regulatory deadlines loom large for climate risk disclosure and sustainability with the clock already ticking for financial institutions. In fact, several central banks are now integrating climate change into stress testing exercises, required disclosure, and governance expectations. It’s all part of a drive to enable banks to take a more pro-active role in managing risks and supporting the transition to a more sustainable financial system.

Aligning to banks’ roadmaps and existing capabilities

• Orchestrating comprehensive data collection, optimising the ingestion of climate risk scores, and enabling collection of customers’ climate commitments and key transaction-related metrics.
• Understanding the analytics lifecycle and deploying alternative modelling approaches to achieve quick wins for stress testing needs, alongside longer-term strategic model adaptations. They are informed by leading FICO analytics solutions, which combine both typical logistic and alternative machine learning analytics to help enrich risk management assessment.
• Helping to establish the best strategic approaches, understanding key gaps, and aligning to banks’ priorities in deploying preconfigured versus custom digital capabilities, which enable a sustainability transition journey.
• Enhancing end-to-end decision making, enabling the centralised management of optimisation tools. It’s an area where FICO already has a proven track record in delivering added value by significantly reducing the time and increasing the efficacy of each decision.
• Cutting direct emissions, leveraging FICO® Platform and other digital capabilities to implement automated decision frameworks efficiently and effectively.