From Flood Map to Balance Sheet: A Working Session on Climate Risk Modeling

Most risk and sustainability teams have seen a flood map, and all of them have seen a balance sheet. Far fewer have seen the steps in between. This session walks through those steps using a sample portfolio of residential and commercial properties in Chennai, a city that has taken both the 2015 floods and Cyclone Michaung in 2023. Participants follow one flood scenario from hazard to loss: flood depth maps at several return periods, exposure data for each property, depth damage functions that turn water depth into a building damage percentage, and the aggregation of those losses into Expected Annual Loss (EAL) and Climate Value at Risk (VaR). A second, shorter example covers transition risk, tracing how a carbon price scenario raises the running costs of a company's own facilities and cuts into the value it carries on its books. The last segment runs the same analysis on the ClimoRisk platform, which takes minutes.

Agenda

1. Climate risk basics (10 min): physical and transition risk, and where RBI's draft disclosure framework, SEBI's BRSR and IFRS S2 ask for them
2. Flood risk, end to end (30 min): hazard, exposure, vulnerability, EAL and Climate VaR on the Chennai portfolio
3. Transition risk example (15 min): carbon pricing scenarios and what they do to a company's operating costs and asset values
4. Live platform demonstration (20 min)
5. Open questions and discussion (15 min)

Who should attend

The session is built for risk, credit and ESG teams at banks, NBFCs, housing finance companies and insurers, and for ESG and sustainability teams at listed companies that want a view of their own assets before SEBI asks for one. Data scientists, GIS analysts and sustainability consultants working with climate data will get the modeling detail, and the material is open to researchers and students in hydrology, climate science or finance. No prior modeling experience is needed.

What participants take away

Participants leave knowing how hazard data turns into a financial number, with a worked example they can repeat on their own portfolio and a sense of where software fits into the risk workflow of a bank or a listed company.

Facilitator

Mohammed Saad, Cofounder and CEO, Climorisk. GARP Sustainability and Climate Risk (SCR) certified, with a background in civil and environmental engineering and carbon accounting.