Quantifying physical climate risks for a banks mortgage portfolio

Recent changes in the MaRisk require banks to incorporate ESG risks into their internal capital adequacy assessment. During this webinar, we will present the methodology as well as the impact incorporating physical risk factors into a mortgage portfolio valuation, focussing on flood risks. You will gain practical insights from a case study to better understand how to estimate and manage these risks in residential real estate portfolios.

What is it about?

Many areas in Germany suffered from floodings or high tides around the winter holiday season in 2023. Without a doubt, due to climate change we will be confronted with these physical risk events and their consequences more frequently going forward. We will focus our discussion on the loss given default (LGD) to present tangible results.

Why should you watch?

With our track record of almost 30 years in risk modelling, we will share insights and practical implications for managing climate risk in a residential real estate portfolio. The findings stem from a case study and should enable you to estimate physical risks in your portfolio more precisely in the future.

We’ll dive into the following:

• Insights into Climate Change Impact: Understand the direct effects of climate change on mortgage portfolio valuation.
• Assessment of Physical Climate Risks: Learn a targeted approach to assess and navigate physical climate risks in real estate portfolios.
• Practical Lessons from Case Study: Explore real-world examples and practical implications derived from a case study.