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The Growing Importance of Quantifying Risk from Climate Events

As climate-related events continue to occur with increased frequency and severity across Canada, the need to measure and manage extreme weather risk is becoming ever more important.

Regulatory bodies are embracing global frameworks and financial standards are incorporating this dimension into their governance and reporting guidelines. As an example, the Office of the Superintendent of Financial Institutions Canada (OSFI) recently released the B-15 guideline on Climate Risk Management. This guideline outlines the the impact climate change may have on “the safety and soundness of federally regulated financial institutions (FRFIs), and the financial system more broadly”. According to OSFI “climate-related risks may manifest over varying time horizons, and are likely to intensify over time.”

Teranet understands the significant risk associated with climate change and is committed to providing our valued customers with the solutions they require to meet regulatory requirements and manage risk. As such we have partnered with Morningstar Sustainalytics to offer a solution founded on the global collection of extreme weather events integrated into a probability model. This is combined with Canadian residential property information and valuations to provide risk and loss measures at the property, region and portfolio level.

Our solution can be incorporated into your current:

  • mortgage adjudication workflows to ensure full risk knowledge in the decision process;
  • risk management framework to ensure business and infrastructure risk factors are comprehensive; and
  • regulatory reporting framework to address requirements growing out of Canadian guidelines.
Join us to hear from industry experts on this important topic

On May 3rd, Teranet is hosting a Climate Risk Summit that will feature an industry expert panel featuring featuring Bruce Schlein, Director, Head of ESG at OMERS Infrastructure and Toby Messier, Commercialization Director of Real Estate Solutions at Morningstar Sustainalytics who will discuss the risks associated with climate change. This event has very limited seating, so if you’re interested in attending click here to secure your spot today.

If you’d like to learn more about Teranet’s Climate Risk Solutions please contact your dedicated account manager.