Trends for converging ESG practices in banks
Strategic Risk
Strategic risk is the mismatch of objectives and activities with stakeholder expectations over a period of time.
This mismatch can lead to a reduction in market value
Business risk
Business risk is the risk that a loss will result from a fall in business activity.
Which risk could arise if a particular bank does not alter its business strategy to esg requirements
Reputational risk
Regulatory risk
Financial risk due to loss of customers and the brown industries becoming less viable
Credit risk if brown industries face issues
Which risks could arise if banks implement ESG risk requirements fully at an early stage?
Financial risk
Credit risk
Operational risk
Last changed2 years ago
