Climate-Related Risks in the Financial Sector, with Kevin Stiroh

In this episode, host Margaret Walls talks with Kevin Stiroh, a senior fellow at Resources for the Future and a former senior advisor at the Federal Reserve. Pulling from his extensive career in the financial sector, Stiroh expounds on how financial institutions evaluate climate-related risks and the analysis necessary to address risks across loans, insurance, and investment portfolios. Stiroh emphasizes that sound banking practices require active collaboration between research and policy to navigate financial risks. As calculations of the macroeconomic impacts of climate change evolve, past research may be less relevant and accurate than newer studies on climate change as sources of information about climate-related financial risk and shocks. Effective risk management is in a bank’s best interest, Stiroh notes, and requires rigorous, credible economic research that informs durable policy solutions. References and recommendations: “The Evolving View of Climate-Related Financial Risks in the US Financial Sector” by Kevin Stiroh; https://www.resources.org/common-resources/the-evolving-view-of-climate-related-financial-risks-in-the-us-financial-sector/ “The Effects of Climate Change–Related Risks on Banks: A Literature Review” by Olivier de Bandt, Laura-Chloé Kuntz, Nora Pankratz, Fulvio Pegoraro, Haakon Solheim, Gregory Sutton, Azusa Takeyama, and Fan Dora Xia; https://onlinelibrary.wiley.com/doi/10.1111/joes.12665 Work from the Network of Central Banks and Supervisors for Greening the Financial System; https://www.ngfs.net/en Books and readings on Antarctic explorers Robert Falcon Scott (https://en.wikipedia.org/wiki/Robert_Falcon_Scott) and Ernest Shackleton (https://en.wikipedia.org/wiki/Ernest_Shackleton) Subscribe to stay up to date on podcast episodes, news, and research from Resources for the Future: https://www.rff.org/subscribe/