Analysis
Climate Risk Stress Test for a Regional Bank
Overview
What this challenge is about.
Your task is to develop a climate risk stress test framework for the bank's commercial loan book. Deliver a scenario analysis (2-3 scenarios), a methodology to estimate probability of default changes, a summary of top-10 vulnerable sectors, and a set of risk management recommendations. Success means the framework is implementable with publicly available data and provides actionable insights. Constraints: no access to proprietary loan data; use representative sector-level data.
The Brief
What you'll do, and what you'll demonstrate.
Design a climate transition risk stress test for a regional bank's commercial loan portfolio to identify vulnerable sectors and recommend mitigation actions.
Earning criteria — what you'll demonstrate
- Understand climate transition risk channels (policy, technology, market)
- Apply NGFS scenario framework to a financial portfolio
- Quantify credit risk impacts using sector-level data
- Develop actionable risk management strategies for a bank
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.
Career mappings coming soon.