Turning Climate Risk into Strategic Advantage Through Stress Testing

In this interview, Ines Galichon explores how climate risk management is moving beyond compliance-driven reporting toward deeper integration within stress testing, capital planning and enterprise risk frameworks. As regulatory expectations diverge globally and climate transition pressures intensify, institutions must strengthen scenario design, governance and forward-looking analysis.

She highlights the practical challenges of modelling long-term climate impacts, navigating data limitations and balancing physical and transition risk considerations. The discussion underscores how robust climate stress testing is becoming a defining capability for financial institutions seeking resilience in an increasingly uncertain environment.