Basel climate guidance leaves op risk managers in the dark

Banks still unclear on how to fit climate events into existing capital framework

The Bank for International Settlements building, home to the Basel Committee on Banking Supervision

Photo: Ulrich Roth

Regulatory guidance on how to fit climate-related risk into the existing capital framework has provided limited clarification for operational risk managers, who are used to applying a methodology based on past loss events.

“Climate change is not a single catastrophic event happening, it’s really many things happening more intensely and more often,” says Evan Sekeris, head of Americas non