Regulatory Alerts2023-09-25
Guidance on Principles for the Effective Management of Climate-Related Financial Risks
The UAE Sustainable Finance Working Group issued these principles to establish minimum standards for financial firms to integrate climate-related risks into governance and risk management. The framework mandates that boards and senior management oversee risk exposures, incorporate them into business strategies, and embed them into capital adequacy and internal control processes. Financial entities are required to implement robust monitoring, reporting, and scenario analysis capabilities to address physical, transition, and liability risks effectively.
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