Integration of ESG factors into Credit Risk (PD/LGD/ECL) modelling
10th December 2026, 9:30 AM (UTC+2 / CEST – Warsaw time)
690 EUR
Online | Advanced Level
BankingESGRisk Management
Environmental, Social, and Governance (ESG) factors are increasingly recognized as material risks in financial decision-making. For banks and financial institutions, integrating ESG into credit risk models is no longer optional – it’s a regulatory and strategic imperative. During this training we will together explore how ESG risks can be embedded into two key frameworks: IFRS9 Loan Loss Provisions and IRB framework. Through case studies and hands-on exercises, this training will equip you with practical steps and approaches that you can implement in your institution.
Agenda highlights
Overview of regulatory landscape and evolving market practice
ESG Risk identification, measurement and monitoring
Transmission channels, mitigants, amplifiers, and impact on Credit Risk losses
IFRS9 framework – ESG forward-looking information incorporation, conceptual alignment with other scenario-based exercises, application of in-model adjustments or overlays
ESG integration in AIRB models – challenges in quantification and calibration, validation issues
Current data and methodological challenges versus pragmatism and long-term vision
Development of ESG integration roadmap – with practical ideas and steps for tactical and strategic solutions
Training formula
Training Language
English
Meeting
Online
Duration
6h (09:00 – 15:00)
Type
Mixed (combination of interactive lectures, case studies and group exercises)
Practical takeaways:
By the end of this course, participants will be able to:
TBU
Target audience
This course is designed for risk, modelling, ESG and data professionals seeking to understand how climate and ESG risks can be incorporated into financial risk management frameworks.
Functions & departments
Credit, Market, Operational and Enterprise Risk Professionals
Risk Modellers and Quantitative Analysts
Model Validators, Model Risk Managers
Risk Officers and Risk Governance Professionals
Data Analysts, Data Scientists, and Reporting Professionals supporting risk functions
Auditors, Internal Audit and Compliance employees and leads
Advisors and consultants
Course level:
Advanced
Prerequisites:
Familiarity with credit risk modelling (PD, LGD, EAD parameters)
No prior experience in ESG or climate risk modelling is required
