scholarly journals Financial Stability and Climate Change

2020 ◽  
Vol 9 (3) ◽  
pp. 27-43
Author(s):  
Nikola Fabris
Keyword(s):  
Climate Change ◽  
Financial Institutions ◽  
Financial Stability ◽  
Financial Risk ◽  
Negative Impact ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Financial Risks ◽  
Balance Sheets ◽  
Sea Levels

AbstractFighting climate change is one of the biggest challenges in the 21st century. Climate change that leads to global warming has been increasingly visible in our environment. Extreme weather conditions such as hurricanes, floods, and droughts have been escalating and their acceleration can be expected in the future. They cause changes in sea levels, epidemics, large fires, etc. Increasingly, we are witnessing minor or major damage caused by these extreme weather conditions. Numerous studies have proven that climate change has negative impact on economic growth and prosperity. However, this paper starts from the premise that in addition to unequivocally identified threats, climate change also creates opportunities.The paper reaches a conclusion that climate change can adversely affect balance sheets of financial institutions. Therefore, climate change is a source of financial risk and thus a part of the mandate of central banks and supervisors in preserving financial stability. This type of risk has not been given enough attention by either supervisors or financial institutions over the past period. This paper develops a model for managing financial risks as a result of climate change.

scholarly journals Climate Change Risks in Financial Business

2021 ◽  
Vol 3 (49) ◽  
pp. 140-146
Author(s):  
I. V. Krasnova ◽  
◽  
L. O. Prymostka ◽  
V. V. Lavreniuk ◽  
◽  
...  
Keyword(s):  
Climate Change ◽  
Financial Institutions ◽  
Financial Stability ◽  
Complex Dynamics ◽  
Global Climate ◽  
Extreme Weather Events ◽  
Financial Risks ◽  
Weather Events ◽  
Climate Change Risks ◽  
High Level

The article is aimed at identifying, firstly, the features and the ways in which climate change influences the profile of financial business, and secondly, financial risks modification while taking into account climate change risks. Climate change is global, it causes new challenges for corporations, financial institutions and central banks, and for economy, as a whole. Statistics on the scale of the threatening impact produced by climate-re;ated risks on economy and its financial sector are presented. It is noted that the aggregate impact of climate change risks significantly exceeds the losses from the financial markets collapse. In particular, due to the natural disasters in 2020, the world economy suffered losses of about US$ 200 billion. The properties of climate-related risks are systematized and generalized, including the following: unpredictability, radical uncertainty, complex dynamics, chain effect, irreversibility, nonlinearity. Due to the high level of uncertainty, the problem of integrating climate change risks into the risk management system of financial institutions remains particularly complex. The ways in which risks generated by global climate change transform into financial risks are determined. It is noted that, despite the threatening impact of damage caused by extreme weather events and climate catastrophes, the management of these risks is still characterized by a low level of penetration into the system of risk-oriented management of financial institutions. In order for the financial business to effectively manage risks taking into account climate change, innovative approaches of strategic importance have been suggested, namely, green bonds and disaster bonds. The financial stability and sustainable dynamic development of economy will depend on the performance of financial institutions in implementing their policies in this area

Financial Risks of the Bank: Assessment and Mechanism of Neutralization

2020 ◽  
Vol 22 (1) ◽  
pp. 6-12
Author(s):  
Nelia Volkova ◽  
◽  
Alina Mukhina ◽  
Keyword(s):  
Risk Assessment ◽  
Financial Stability ◽  
Financial Risk ◽  
Stable Operation ◽  
Financial Risks ◽  
Negative Consequences ◽  
Conceptual Approach ◽  
Relevant Today ◽  
Banking Institution ◽  
The Impact

Abstract. Introduction. The issue of financial risk management of commercial banks is quite relevant today, because the activity of banks is the most risky of all. The presence of risks in banking can lead to unexpected losses, namely the loss of own resources. That’s why for the stable operation of the bank without loss the priority is to assess the financial risks, which is the basis for their further neutralization. Purpose. The purpose of the article is to develop conceptual provisions for assessment financial risks and justifying the need to neutralize them. Results. The article analyzes the impact of risks on the financial stability of a banking institution. The main methods of bank risk assessment are considered. All these include the statistical method, the analytical method, the expert method, the analogue method and the combined method. The necessity of neutralization of financial risks in order to avoid negative consequences is substantiated. Also the methods of bank risks neutralization are considered. It should be noted that these methods of neutralization can not only be used, but also supplement the list with new methods must be done, which in the future will protect the bank from the influence of undesirable factors. A conceptual approach to the assessment and neutralization of financial risks is proposed. This conceptual approach aims to ensure effective assessment of the level of risk with their subsequent neutralization Conclusions. Use of a conceptual approach will allow an effective risk assessment and decision-making to avoid or accept risk. Thanks to using this approach, the banking institution will be able to react swiftly to the presence of financial risks and to prevent the occurrence of negative consequences, which may lead to a violation of the financial stability of the bank.

scholarly journals Overheating Risk and Energy Demand of Nordic Old and New Apartment Buildings during Average and Extreme Weather Conditions under a Changing Climate

2021 ◽  
Vol 11 (9) ◽  
pp. 3972
Author(s):  
Azin Velashjerdi Farahani ◽  
Juha Jokisalo ◽  
Natalia Korhonen ◽  
Kirsti Jylhä ◽  
Kimmo Ruosteenoja ◽  
...  
Keyword(s):  
Climate Change ◽  
Energy Demand ◽  
Energy Use ◽  
Residential Buildings ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Living Room ◽  
Extra Energy ◽  
Cooling Unit ◽  
Indoor Conditions

The global average air temperature is increasing as a manifestation of climate change and more intense and frequent heatwaves are expected to be associated with this rise worldwide, including northern Europe. Summertime indoor conditions in residential buildings and the health of occupants are influenced by climate change, particularly if no mechanical cooling is used. The energy use of buildings contributes to climate change through greenhouse gas emissions. It is, therefore, necessary to analyze the effects of climate change on the overheating risk and energy demand of residential buildings and to assess the efficiency of various measures to alleviate the overheating. In this study, simulations of dynamic energy and indoor conditions in a new and an old apartment building are performed using two climate scenarios for southern Finland, one for average and the other for extreme weather conditions in 2050. The evaluated measures against overheating included orientations, blinds, site shading, window properties, openable windows, the split cooling unit, and the ventilation cooling and ventilation boost. In both buildings, the overheating risk is high in the current and projected future average climate and, in particular, during exceptionally hot summers. The indoor conditions are occasionally even injurious for the health of occupants. The openable windows and ventilation cooling with ventilation boost were effective in improving the indoor conditions, during both current and future average and extreme weather conditions. However, the split cooling unit installed in the living room was the only studied solution able to completely prevent overheating in all the spaces with a fairly small amount of extra energy usage.

scholarly journals Weather Literacy in Times of Climate Change

2020 ◽  
Vol 12 (3) ◽  
pp. 435-452 ◽  
Author(s):  
Nadine Fleischhut ◽  
Stefan M. Herzog ◽  
Ralph Hertwig
Keyword(s):  
Climate Change ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Extreme Weather Events ◽  
The Public ◽  
Weather Events ◽  
The Future ◽  
Nationally Representative ◽  
And Migration ◽  
Weather Risks

AbstractAs climate change unfolds, extreme weather events are on the rise worldwide. According to experts, extreme weather risks already outrank those of terrorism and migration in likelihood and impact. But how well does the public understand weather risks and forecast uncertainty and thus grasp the amplified weather risks that climate change poses for the future? In a nationally representative survey (N = 1004; Germany), we tested the public’s weather literacy and awareness of climate change using 62 factual questions. Many respondents misjudged important weather risks (e.g., they were unaware that UV radiation can be higher under patchy cloud cover than on a cloudless day) and struggled to connect weather conditions to their impacts (e.g., they overestimated the distance to a thunderstorm). Most misinterpreted a probabilistic forecast deterministically, yet they strongly underestimated the uncertainty of deterministic forecasts. Respondents with higher weather literacy obtained weather information more often and spent more time outside but were not more educated. Those better informed about climate change were only slightly more weather literate. Overall, the public does not seem well equipped to anticipate weather risks in the here and now and may thus also fail to fully grasp what climate change implies for the future. These deficits in weather literacy highlight the need for impact forecasts that translate what the weather may be into what the weather may do and for transparent communication of uncertainty to the public. Boosting weather literacy may help to improve the public’s understanding of weather and climate change risks, thereby fostering informed decisions and mitigation support.

The influence of climate change on waterborne disease and Legionella: a review

2018 ◽  
Vol 138 (5) ◽  
pp. 282-286 ◽  
Author(s):  
JT Walker
Keyword(s):  
Climate Change ◽  
Disease Transmission ◽  
Local Level ◽  
Extreme Weather ◽  
Extreme Weather Events ◽  
Waterborne Diseases ◽  
Sea Levels ◽  
The Earth ◽  
Weather Events ◽  
Rising Sea Levels

Climate change is predicted to have a major impact on people’s lives with the recent extreme weather events and varying abnormal temperature profiles across the world raising concerns. The impacts of global warming are already being observed, from rising sea levels and melting snow and ice to changing weather patterns. Scientists state unequivocally that these trends cannot be explained by natural variability in climate alone. Human activities, especially the burning of fossil fuels, have warmed the earth by dramatically increasing concentrations of heat-trapping gases in the atmosphere; as these concentrations increase, the more the earth will warm. Climate change and related extreme weather events are being exacerbated sooner than has previously been considered and are already adversely affecting ecosystems and human health by increasing the burden and type of disease at a local level. Changes to the marine environment and freshwater supplies already affect significant parts of the world’s population and warmer temperatures, especially in more temperate regions, may see an increased spread and transmission of diseases usually associated with warmer climes including, for example, cholera and malaria; these impacts are likely to become more severe in a greater number of countries. This review discusses the impacts of climate change including changes in infectious disease transmission, patterns of waterborne diseases and the likely consequences of climate change due to warmer water, drought, higher rainfall, rising sea levels and flooding.

Financial risk in the contemporary environment of enterprises

2018 ◽  
Vol 19 (2) ◽  
pp. 49-63 ◽  
Author(s):  
Lumír Kulhánek ◽  
Adam Sulich
Keyword(s):  
Economic Growth ◽  
Financial Stability ◽  
Financial Risk ◽  
Historical Data ◽  
External Environment ◽  
System Stability ◽  
Financial Risks ◽  
Financial Systems ◽  
Historical Data Analysis ◽  
Tremendous Impact

This article discusses the importance of the financial system stability and em¬phasises the risks in the contemporary environment of enterprises. Financial systems, with their opportunities and threats, have a tremendous impact on economic growth. Therefore, enterprises have to measure the risks coming from their external environment. The aim of this paper is to analyse historical data related to financial risks and to propose a new tool based on well-known solutions. The literature review and historical data analysis are the main methods used in this paper. The global financial stability map can be implemented as one of many tools of assessing risk, with some modifications.

scholarly journals Climate Change Adaptation Strategies Among Cereal Farmers in Kwara State, Nigeria

2021 ◽  
pp. 509-522
Author(s):  
S. A. Aderinoye-Abdulwahab ◽  
T. A. Abdulbaki
Keyword(s):  
Climate Change ◽  
Negative Impact ◽  
Weather Conditions ◽  
Agricultural Activities ◽  
Early Planting ◽  
Weather And Climate ◽  
Favorable Weather ◽  
Agricultural Areas ◽  
Livestock Rearing ◽  
Climate Change Adaptation Strategies

AbstractAgriculture is the art and science of food production which spans soil cultivation, crop growing, and livestock rearing. Over the years, it has served as a means of employment and accounts for more than one-third of total gross domestic product. Cereals, which include rice, maize, and sorghum, are the major dietary energy suppliers and they provide significant amounts of protein, minerals (potassium and calcium), and vitamins (vitamin A and C). The growth and good yield of cereal crop can be greatly influenced by elements of weather and climate such as temperature, sunlight, and relative humidity. While climate determines the choice of what plant to cultivate and how to cultivate, it has been undoubtedly identified as one of the fundamental factors that determine both crop cultivation and livestock keeping. The chapter, though theoretical, adopted Kwara State, Nigeria, as the focus due to favorable weather conditions that support grains production. It was observed that the effect of climate change on cereal production includes: drastic reduction in grains production, reduction in farmers’ profit level, increment in cost during production, diversification to nonfarming activities, and discouragement of youth from participating in agricultural activities. Also, the adopted coping strategies employed by farmers in the focus site were early planting, planting of improved variety, irrigation activities, alternates crop rotation, and cultivation of more agricultural areas. The chapter thus concluded that climate change has negative impact on cereals production and recommends that government should provide communal irrigation facilities that will cushion the effect of low rains on farmers’ productivity, while early planting and cultivation of drought-resistant cultivars should be encouraged.

scholarly journals Fishers’ resilience towards extreme weather conditions in the South China Sea: A case study of Natuna Islands, Indonesia

Omni-Akuatika ◽  
2020 ◽  
Vol 16 (3) ◽  
pp. 49
Author(s):  
Rani Hafsaridewi ◽  
Hikmah Hikmah ◽  
Armen Zulham ◽  
Permana Ari Soejarwo ◽  
Bayu Vita Indah Yanti
Keyword(s):  
Climate Change ◽  
South China Sea ◽  
South China ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Economic Effects ◽  
Fish Distribution ◽  
Economic Dynamics ◽  
China Sea ◽  
Weather Changes

Factors influencing fishers’ lives are climate change and extreme change in local weather. Climate change and extreme weather conditions are expected to affect marine fisheries’ productivity and modify fish distribution because of changes in water temperature, ocean currents, and other oceanic conditions. Both are issues faced by fishers in Natuna. The purpose of this study was to identify climate and weather changes in the research location, investigate the socio-economic effects, and analyse fishers’ adaptability patterns in relation to climate change. The method used in this study includes surveys, questionnaires, in-depth interviews, and focus group discussions. The results reveal climate change, and extreme weather affects the socio-economic dynamics of fishers in the Natuna Islands. The socio-economic dynamics as fishers’ resilience towards extreme climate are done by adjusting the number of workers and workforce, adjusting the size of fishing boats/ships, adjusting the composition of fishing gears, and changing fishing grounds. Keywords: Resilience, fishermen, climate change, Natuna, South China Sea

scholarly journals FINANCIAL RISK MANAGEMENT OF AN INDUSTRIAL ENTERPRISE

2020 ◽  
pp. 97-103
Author(s):  
T. Vasilyeva ◽  
N. Antoniuk
Keyword(s):  
Risk Management ◽  
Financial Stability ◽  
Web Application ◽  
Financial Risk ◽  
Industrial Enterprise ◽  
Financial Risks ◽  
Financial Risk Management ◽  
Industrial Enterprises ◽  
Methodical Approach ◽  
Constituent Elements

The article is devoted to the issue of financial risk management of industrial enterprises, which is relevant in the modern realities of the Ukrainian economy. The Google Trends web application analyzes the popularity of search queries in business and industry for phrases such as "financial risk" and "financial risk management" in Ukraine and in the world as a whole over the past 12 months. Based on official statistics, the analysis of the dynamics of the main financial indicators of industrial enterprises of Sumy region for 5 years, namely financial results before tax, financial results from operating activities and operating profitability. Based on the coefficient of variation, the level of financial risk that accompanies the activities of industrial enterprises of Sumy region is determined. The essence of financial risks of an industrial enterprise is revealed and its constituent elements are presented. The main existing approaches to the quantitative assessment of financial risks are presented, which are mainly based on probabilistic assessment. A methodical approach to financial risk management of industrial enterprises is proposed, which provides for constant monitoring of deviations of the integrated indicator, calculated on the basis of financial statements of the enterprise and includes indicators of liquidity, financial stability, profitability, cash flow from financial activities. At the same time, the company is recommended to set clear boundaries of possible deviations of the integrated financial indicator. Emphasis is also placed on the need to form and implement an integrated financial risk management system at industrial enterprises of Ukraine in the modern economic realities of Ukraine. A clear system of financial risk management will allow industrial enterprises to respond in a timely manner to potential threats, neutralize financial risks and avoid possible losses.

scholarly journals Climate Change and Its Impact on Agriculture

2021 ◽  
Vol 24 (s1) ◽  
pp. 50-57
Author(s):  
Adrián Varga
Keyword(s):  
Climate Change ◽  
Temperature Stress ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Adaptation Measures ◽  
Intense Precipitation ◽  
Climate Indicator ◽  
The Times ◽  
Impacts Of Climate Change

Abstract We live in the times of climate change when global temperatures are constantly rising. The impacts of climate change will also be felt in agriculture in Slovakia: increased productivity and yields in colder areas, reduced production in warmer areas due to temperature stress, risk of erosion as a result of more extreme weather conditions (stronger winds, more intense precipitation), the occurrence of new pests etc. Hence, we should be prepared for adaptation measures that would help mitigate it. The aim of this paper is to present the impacts of climate change on agriculture and land, and to offer adaptation measures, and show the prognosis of the climate indicator Ts >10 °C from now until 2100.

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