ESG and Climate Risk Stress Testing Masterclass
Climate stress testing and ESG credit integration for banks under supervisory scrutiny — physical risk, transition risk, scenario analysis and what the results mean for lending.
Format
Classroom · Virtual
Upcoming sessions
Pick a session to applyADMISSIONS OPENThe programme
Supervisors now expect banks to account for the climate impact they and their clients create — and to stress it. Physical risk damages a bank or its customers directly; transition risk arrives through legislation and regulation that reshape operations. The supervisory climate stress test is a learning exercise, not a pass-or-fail event with capital consequences, but it exposes vulnerabilities, best practice and gaps all the same. This masterclass covers the core principles, regulations and techniques for integrating ESG risk into lending and investment decisions — including how ESG factors drive credit risk in the banking business model. The cohort works through stress-testing frameworks, scenario analysis and the link between ESG factors and PD/LGD models.
What you will do
Who attends
- Heads of climate risk, ESG risk and sustainability functions
- Stress-testing, model risk and capital modelling teams
- Credit risk, structured finance and sustainable finance professionals
- ESG strategy, analytics and investor relations leads
Programme agenda
Built for the decisions no textbook prepares you for
I.Climate risk in the banking model
- Physical risk and transition risk — what each does to a bank
- How ESG risk factors drive credit risk
- Key principles of ESG, responsible banking and sustainable financing
II.Stress testing climate risk
- Stress-testing banks for climate change — a comparison of practices
- Designing an effective climate risk stress-testing framework
- Best practices for climate risk scenario analysis
- The key challenges and how banks are addressing them
III.ESG in credit decisions
- How ESG risks are considered in credit ratings
- ESG factors against probability of default and loss given default models
- Integrating ESG issues into credit analysis — the obstacles and the workarounds
IV.Governance and the regulatory horizon
- Climate governance and the regulatory bodies that shape it
- ESG reporting frameworks by industry
- How organisations are responding to climate risk, and where ESG investing goes next
Frequently asked
Does the masterclass cover both physical and transition climate risk?
Yes. The programme distinguishes physical risk, which damages a bank or its customers directly, from transition risk, which arrives through legislation and regulation that reshape operations. Both feed into the stress-testing frameworks and scenario analysis the cohort works through, benchmarked against how peer banks are being stress-tested for climate change.
How does the course link ESG factors to credit risk?
The programme traces how ESG risk factors drive credit risk in the banking business model: how ESG risks are considered in credit ratings, how they bear on probability of default and loss given default models, and the obstacles — and workarounds — to integrating ESG issues into credit analysis and lending decisions.
Who should attend, and how is the masterclass organised?
It serves heads of climate risk, ESG and sustainability functions, stress-testing and model risk teams, credit and sustainable finance professionals, and ESG strategy leads. Delivery is in English and French on a rolling calendar, with dates on request; fees and quotations are provided on enquiry, and an in-house edition tailored to your institution is available.
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In their words
Knowledge transfer, emphasised throughout
“We worked with BIZENIUS for our Fresh Graduates Programme — they are simply amazing. Knowledge transfer and practical learning were emphasised throughout.”
Kuwait Investment Authority
From the Mandate Record
Mandate № 04 · Africa
Capital frameworks built to run the bank, not to satisfy a filing
Most frameworks are written to satisfy the regulator. We build the kind that run the bank.
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The Capability Arc™
Fix it · Advisory
Stress Testing & Scenario Governance
Scenarios, models and governance that survive review.
Automate it · Smart IT
Stress Testing & Scenario Engine
Run the scenarios on an engine, not a spreadsheet.
Learning is one point on the Capability Arc. Many institutions pair this programme with the advisory engagement — and automate what the framework demands.
Teams from these institutions train with BIZENIUS
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Take the brochure with you.
One request — the full agenda, the faculty and the next cohort dates, sent personally by the admissions team.