Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Climate Goals & Targets

Environmental Challenges

• Volatility and threats like cyberattacks hampering traditional approaches to risk management and controls.
• The divide between front-office and back-office functions that still rely on legacy systems.
• Manual processes make internal controls inefficient, complicated, and reactive.
• Integration of advanced technologies into existing systems and workflows.
• Management and analysis of the increasing volume and complexity of data.
• Rapidly evolving regulatory requirements.
• Sophisticating cybersecurity threats in a digital-first environment.
• Resource limitations and skill gaps in areas such as data analytics.
• Alignment between risk management strategies and overall business goals.
• Environmental, Social, and Governance (ESG) factors.

Mitigation Strategies

• Developing a Future of Controls (FoC) strategy.
• Reconstructing the Internal Controls Framework to be dynamic and data-driven.
• Designing a Next-Generation Controls Operating Model with first-line ownership, shared ambition, and integrated second-line functions.
• Establishing a Controls Technology Ecosystem leveraging automation, AI, and machine learning.
• Implementing Data Loss Prevention (DLP), encryption, endpoint security, blockchain for secure transactions, and RegTech solutions.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Impact of extreme weather events on loan portfolios

Transition Risks

• Emerging regulations and guidelines

Opportunities

• Sustainable finance