CLIMATE FINANCIAL RISK TRAINING COURSE

COURSE OVERVIEW

Climate Financial Risk Training Course is a comprehensive professional programme designed to equip finance professionals, risk managers, treasury specialists, investment professionals, bankers, insurers, regulators, corporate executives, and policymakers with practical knowledge and advanced skills for identifying, assessing, measuring, managing, and reporting climate-related financial risks. The course explores the growing relationship between climate change, financial stability, investment performance, credit risk, market risk, liquidity risk, operational risk, insurance risk, and long-term organizational resilience. Participants gain practical knowledge of climate financial risk management, climate risk assessment, sustainable finance, green finance, ESG risk management, climate stress testing, climate scenario analysis, transition risk, physical risk, and climate-related financial disclosures.

The training provides an integrated understanding of physical climate risks and transition climate risks and their potential impact on assets, liabilities, revenues, operating costs, collateral values, supply chains, credit portfolios, investment portfolios, and business models. Participants will examine climate-related hazards such as floods, droughts, extreme temperatures, wildfires, storms, sea-level rise, and changing rainfall patterns, alongside transition drivers including carbon pricing, regulatory reforms, technological changes, energy transition, consumer preferences, and decarbonization policies. The course connects climate risk with enterprise risk management, financial risk management, corporate finance, treasury management, investment appraisal, credit risk management, and strategic planning.

Participants will develop practical capabilities in climate risk identification, materiality assessment, climate exposure mapping, scenario analysis, stress testing, climate-sensitive portfolio analysis, carbon-risk assessment, financed emissions, climate-adjusted credit assessment, climate risk metrics, risk appetite, climate risk governance, and climate-related financial reporting. The programme also examines sustainable investment strategies, green bonds, transition finance, climate adaptation finance, blended finance, carbon markets, and climate-resilient investment decisions. Participants will learn how organizations can incorporate climate considerations into lending, investment, insurance, procurement, capital allocation, budgeting, and business continuity decisions.

Through practical exercises, financial case studies, climate scenarios, portfolio assessments, stress-testing simulations, risk dashboards, and strategic workshops, participants will learn how to develop effective climate financial risk management frameworks. The programme supports organizations in strengthening financial resilience, improving investment decisions, protecting assets, managing regulatory and reputational exposure, enhancing stakeholder confidence, and integrating climate considerations into enterprise-wide decision-making. It is particularly relevant to financial institutions, development organizations, government agencies, infrastructure investors, energy companies, manufacturing organizations, agricultural businesses, insurers, pension funds, and corporations exposed to climate-related financial risks.

COURSE OBJECTIVES

By the end of the training, participants will be able to:

1. Explain the relationship between climate change and financial risk.
2. Distinguish between physical climate risk and transition risk.
3. Identify climate-related financial exposures across organizational portfolios.
4. Conduct climate risk materiality and vulnerability assessments.
5. Apply climate scenario analysis and financial stress-testing techniques.
6. Assess climate impacts on credit, market, liquidity, operational, and investment risks.
7. Integrate climate risk into enterprise risk management frameworks.
8. Develop climate risk governance, policies, risk appetite, and monitoring systems.
9. Apply climate-related financial metrics, indicators, and disclosure principles.
10. Develop practical climate financial risk management and resilience strategies.

ORGANIZATION BENEFITS

1. Strengthens organizational climate risk identification and assessment.
2. Improves financial resilience against climate-related shocks.
3. Enhances credit and investment risk management.
4. Supports effective climate scenario analysis and stress testing.
5. Improves strategic financial planning and capital allocation.
6. Strengthens ESG and sustainable finance capabilities.
7. Enhances climate risk governance and board-level oversight.
8. Supports improved climate-related reporting and disclosure.
9. Reduces potential financial, operational, regulatory, and reputational losses.
10. Supports long-term sustainable investment and business resilience.

TARGET PARTICIPANTS

This course is designed for Chief Financial Officers, Finance Managers, Treasury Managers, Risk Managers, Enterprise Risk Managers, Credit Managers, Investment Managers, Portfolio Managers, Financial Analysts, Banking Professionals, Insurance Professionals, Actuaries, Sustainability Managers, ESG Professionals, Climate Finance Specialists, Internal Auditors, Compliance Officers, Regulators, Policymakers, Development Finance Professionals, Corporate Executives, Asset Managers, Pension Fund Managers, and senior decision-makers responsible for financial risk, investment, sustainability, or organizational resilience.

COURSE OUTLINE

MODULE 1: FOUNDATIONS OF CLIMATE FINANCIAL RISK

1. Climate change and the financial system
2. Definition and classification of climate financial risks
3. Physical climate risk and acute versus chronic hazards
4. Transition risk and the low-carbon economic transition
5. Climate risk transmission channels and financial impacts
6. Climate risk materiality and organizational exposure assessment
   General Case Study: A commercial bank has a large agricultural lending portfolio exposed to drought and changing rainfall patterns. Participants identify the climate transmission channels and assess potential financial consequences.

MODULE 2: CLIMATE RISK IDENTIFICATION & ASSESSMENT

1. Climate risk identification frameworks and methodologies
2. Climate vulnerability and exposure assessment
3. Geographic and sectoral climate-risk mapping
4. Asset-level and portfolio-level climate exposure
5. Climate risk indicators and key risk metrics
6. Climate risk prioritization and materiality assessment
   General Case Study: An insurance company has significant exposure to flood-prone properties. Participants develop a climate exposure map and identify priority areas for financial risk mitigation.

MODULE 3: CLIMATE SCENARIO ANALYSIS & STRESS TESTING

1. Principles of climate scenario analysis
2. Physical and transition climate scenarios
3. Climate stress-testing methodologies
4. Financial modelling under climate scenarios
5. Sensitivity analysis and scenario assumptions
6. Interpretation and communication of climate stress-test results
   General Case Study: A pension fund evaluates how different climate-transition pathways could affect its equity and fixed-income portfolio over the medium and long term. Participants conduct scenario-based portfolio analysis.

MODULE 4: CLIMATE IMPACT ON FINANCIAL RISK

1. Climate impacts on credit and default risk
2. Climate-related market and investment risk
3. Climate impacts on liquidity and funding risk
4. Operational, supply-chain, and business continuity risks
5. Insurance and underwriting climate risks
6. Climate impacts on asset valuation and collateral
   General Case Study: A bank finances manufacturing companies that rely heavily on carbon-intensive technologies. Participants assess how new environmental regulations and technology changes could affect borrowers' creditworthiness.

MODULE 5: CLIMATE FINANCE, ESG & INVESTMENT RISK MANAGEMENT

1. Principles of sustainable finance and green finance
2. ESG integration into financial risk management
3. Green bonds, sustainability-linked finance, and transition finance
4. Climate-resilient investment and capital allocation
5. Carbon markets, carbon pricing, and financial implications
6. Climate-adjusted investment and portfolio management
   General Case Study: An investment institution is considering financing a renewable-energy infrastructure portfolio. Participants evaluate climate risks, ESG factors, expected returns, transition benefits, and financing structures.

MODULE 6: CLIMATE RISK GOVERNANCE, DISCLOSURE & STRATEGIC IMPLEMENTATION

1. Climate risk governance and board responsibilities
2. Climate risk appetite, policies, limits, and controls
3. Integrating climate risk into enterprise risk management
4. Climate-related financial disclosures and reporting
5. Climate risk dashboards, monitoring, and management information
6. Developing a climate financial risk management implementation roadmap
   General Case Study: A multinational organization wants to integrate climate risk into its existing enterprise risk management framework. Participants develop a governance structure, climate risk appetite, monitoring indicators, reporting framework, and implementation roadmap.

GENERAL INFORMATION

1. Customized Training: All our courses can be tailored to meet the specific needs of participants.
2. Language Proficiency: Participants should have a good command of the English language.
3. Comprehensive Learning: Our training includes well-structured presentations, practical exercises, web-based tutorials, and collaborative group work. Our facilitators are seasoned experts with over a decade of experience.
4. Certification: Upon successful completion of training, participants will receive a certificate from Foscore Development Center (FDC-K).
5. Training Locations: Training sessions are conducted at Foscore Development Center (FDC-K) centers. We also offer options for in-house and online training, customized to the client's schedule.
6. Flexible Duration: Course durations are adaptable, and content can be adjusted to fit the required number of days.
7. Onsite Training Inclusions: The course fee for onsite training covers facilitation, training materials, two coffee breaks, a buffet lunch, and a Certificate of Successful Completion. Participants are responsible for their travel expenses, airport transfers, visa applications, dinners, health/accident insurance, and personal expenses.
8. Additional Services: Accommodation, pickup services, flight booking, and visa processing arrangements are available upon request at discounted rates.
9. Equipment: Tablets and laptops can be provided to participants at an additional cost.
10. Post-Training Support: We offer one year of free consultation and coaching after the course.
11. Group Discounts: Register as a group of more than two and enjoy a discount ranging from 10% to 50%.
12. Payment Terms: Payment should be made before the commencement of the training or as mutually agreed upon, to the Foscore Development Center account. This ensures better preparation for your training.
13. Contact Us: For any inquiries, please reach out to us at training@fdc-k.org or call us at +254712260031.
14. Website: Visit our website at www.fdc-k.org for more information.