Modeling the Impact of Climate Risks on Mortgages

Regulators, customers, investors, and other stakeholders are driving financial institutions to do their part to transition to a low-carbon economy and manage exposure to climate-related risks. Central banks are conducting climate stress test exercises. They are using new data sources and developing new types of models, often leveraging methods from other scientific and engineering fields. Practitioners need software that provides a broad range of modeling functionality, flexible interfaces, rich visualization capabilities, collaboration, and review features to keep up with the pace of change in this area.

Learn how you can use MATLAB^® to model both physical and transition climate risks. In a live demonstration, you will learn how to:

• Visualize flooding and subsidence risk within a city (physical risk)
• Understand the impact of remediation costs or policies aimed at increasing the energy efficiency of buildings (transition risk)
• Model the impact of these on the credit risk exposure in a portfolio of mortgages