Assessing physical risk: a crucial step in building and strengthening climate resilience

This event will showcase practical tools that public and private actors can leverage to better prepare for the climate crisis. It highlights the importance of developing risk assessment tools that can increase the resilience of the financial system and the society.

Solutions: Physical climate risk assessment is a prerequisite for designing robust adaptation solutions, as well as to steering financial flows towards resilience. It enables both to locally act by raising awareness to climate risk and engage with stakeholders on adaptation solutions and prevention measures; and to incentivize investments to finance adaptation.

Mobilisation and synergies: Risk assessment tools are essential to measure, understand and prepare for climate risks and their financial impacts. However, a collaborative approach of the entire ecosystem (public institutions, researchers, private and financial sector) is paramount to effectively manage climate risks and build strong resilience. Robust data on physical risks and their financial impact can also help financial institutions understand how climate events can trigger secondary environmental effects, enabling them to make more informed decisions that consider the interconnected nature of environmental risks, and to invest accordingly into effective resilience projects.