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The challenge of climate-related stress testing

A webinar presented by the Centre for Governance, Regulation and Industrial Strategy and the London Institute of Banking and Finance.

  • 9 Oct 2020, 1.00pm to 9 Oct 2020, 2.00pm BST (GMT +01:00)
  • This is an online event.
  • This event is free

Stress testing for climate-related risks is high on the agenda for all financial institutions. Physical risks appear to be increasing with more extremes in weather and environmental degradation. Transition risks will evolve as regulation and national policies change, technology evolves and lender/investors modify their investment preferences.

Risk management through stress testing is a well understood process, but environmental risk presents a unique challenge as the outcomes are expected to be unprecedented. The design of the stress tests themselves can have economic consequences as it influences the flow of funds to new and old technologies and industries.

The London Institute of Banking and Finance, and the Centre for Governance, Regulation and Business Strategy, School of Management, University of Bath have teamed up to host a webinar to address this important topic. We have assembled a panel of experts in their fields to address the challenges of stress-testing from the perspective of a commercial bank, a multi-lateral development bank, and an asset manager.

The webinar is intended for financial institutions, regulators and advisers and also for academics and students.

This webinar will be run on zoom. A joining link will be sent to you in the days before the event. Please register here to receive the joining link.

Speakers

Our speakers are experts in the fields of sustainable finance.

  • Chair - Chris McHugh
  • Panel members - Mark Lewis, Martijn Regelink, Alan Smith
  • Host - Ania Zalewska

Chris McHugh - LIBF

Chris is the Director of the Centre for Sustainable Finance at The London Institute of Banking & Finance where he lectures on risk management and derivatives. He is a visiting lecturer at the Judge Business School, Cambridge University and a PhD researcher at the University of Southampton focusing on development finance. As a Senior Adviser to the International Association of Credit Portfolio Managers, he works with development banks and export credit agencies on risk management strategies.

He has over 20 years’ experience in financial markets. As a Managing Director at HSBC for 14 years he ran derivative trading and structuring teams responsible for the risk management of: Counterparty Risk (‘XVA’), Funding and Collateral Discounting risk; Energy Derivatives; Emerging Market Credit; and Foreign Exchange derivatives. Prior to that he worked in Markets at Credit Suisse and Deutsche Bank, and at Merrill Lynch in Investment Banking.

Chris graduated from King’s College, Cambridge, with a degree in Engineering and has an MBA from London Business School.

Mark Lewis - BNP Paribas

Mark is Global Head of Sustainability Research at BNP Paribas Asset Management, having joined in January 2019. Previously, he was Managing Director and Head of Research at the Carbon Tracker Initiative, Managing Director and Head of European Utilities Research at Barclays, Chief Energy Economist at Kepler Cheuvreux, and Managing Director and Global Head of Carbon Research at Deutsche Bank. He has also been a member of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures since May 2016.

Mark was the number-1 ranked carbon analyst in the benchmark Energy Risk commodities awards in 2008, 2009, 2010, and 2011, and in July 2020 his report “Wells, Wires, and Wheels” won the Thought Leadership award for Sustainable Investing in the annual Environmental Finance awards.

Mark is a UK and French Citizen and holds a BA (First-Class Hons) in Modern Languages and Economics from Sheffield University, an MPhil from Cambridge University, and an MA from London University.

Martijn Regelink - World Bank

Martijn is a Senior Financial Sector Specialist in the Financial Stability Team in the World Bank’s Finance, Competitiveness, and Innovation Global Practice. He leads the Bank’s advisory services on climate and environmental risks for the financial sector, providing policy advice to regulators and supervisors around the world. Currently, he is working on projects in South East Asia, Southern Africa, Colombia, and Morocco; and leads Bank engagements on climate risk in the WB-IMF Financial Sector Assessment Program. He also represents the Bank in various NGFS and FSB working groups on climate risk.

Previously, Martijn worked as a strategy advisor to the board of the Dutch central bank (DNB), leading DNB’s program on climate risks, which included one of the first assessments by a regulator of physical and transition risks. Moreover, he represented the Netherlands in the G20 Green Finance Study Group and was an advisor to DNB Executive Director and Chair of the NGFS Frank Elderson on the EU’s High-Level Expert Group on Sustainable Finance.

Before joining DNB, Martijn worked as a strategy tech advisor for Deloitte Consulting focusing on the financial sector. He holds degrees from the University of Groningen in Economics and International Relations.

Alan Smith - HSBC

Alan is a Senior Advisor on Climate and ESG Risk Management for HSBC. He is a member of HSBC’s Climate Business Council whose remit is to Develop the Group’s sustainable finance strategy; provide oversight and governance of climate initiatives on behalf of the Group Executive Committee; and facilitate implementation through coordination and collaboration across businesses, functions and regions. He co-chairs the HSBC Climate Risk Oversight Forum.

Prior to his current role Alan was Global Head of Risk Strategy and Chief of Staff to Group Chief Risk Officer at HSBC, including oversight of the Stress Testing and Model Risk Management functions. Alan has worked with HSBC for over 25 years in a variety of senior and global finance, risk and capital management roles in London and in Saudi Arabia.

Prior to HSBC, Alan worked with KPMG London where he qualified as a Chartered Accountant with the Institute of Chartered Accountant in England and Wales. He has an MBA in Finance from the Cass Business School, City – University of London, which he attended on a UK Commonwealth Scholarship, and did his undergraduate degree at the University of the West Indies in Jamaica.

Alan is Church Commissioner of the Church of England and a Trustee of the Global Association of Risk Professionals. He sits on the Advisory Board of the Centre for Risk Studies at Cambridge University’s Judge Business School.

Ania Zalewska - CGR&IS, University of Bath

Ania is a Professor of Finance and Director of the Centre for Governance, Regulation and Industrial Strategy (CGR&IS) at the University of Bath's School of Management. She is a cross-disciplinary researcher with interest in the development of financial markets, institutional investors and corporations. She has published extensively in leading academic journals, delivered keynote addresses at many academic and business conferences and workshops, and has been a member of scientific committees for numerous international conferences.

She is also a board member of the Dioscuri Scientific Committee, Max Planck Society (Germany), Chair of the International Finance and Banking Society’s Awards Committee, Director-at–Large of the Multinational Finance Society, a member of the Board of Directors of the European Financial Association, and was a research scholar at the Haas School of Business (Berkeley, USA), NY Stern School of Business (USA), Rutgers Business School (USA), Hanken Business School (Finland), and IPAG Business School (Brazil).

She successfully mixes her academic career with advising numerous UK government bodies such as the Competition Commission, HMRC, the Committee on Standards in Public Life, FSA, DECC, BEIS, National Infrastructure Commission, oversees governmental bodies, and leading international companies and consulting firms on financial issues. She has presented her research at leading policy organisations including IMF. Her opinions were featured in Financial Times, The Times, The Economist, and many other international and national outlets.

Ania has both a mathematical and finance background (holds a PhD in Mathematics from the Polish Academy of Sciences in Warsaw, and a PhD in Financial Economics from the London Business School in addition to two MSc degrees in Mathematics and MA in European Studies).

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