RMA Climate Risk Consortium and Real option: Difference between pages

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''Risk management - climate risk - North America - financial institutions - Risk Management Association (RMA)''.
Real options are the valuable operational choices available to the owners of projects and of businesses.


The Risk Management Association's Climate Risk Consortium is a collaboration between North American financial institutions established to raise awareness of climate change and address risks relevant to it.
For example, the options to expand, contract, defer or abandon the project (or business).


It was founded in 2021.
 
The existence of valuable real options in favour of the owners generally increases the total value of a project or business.
 
For this reason a real options analysis of a proposal may in some cases result in a decision to proceed with the project, in circumstances where other project evaluation techniques would have led to rejecting the proposal.
 
 
However, it is also possible that a proposal may grant real options - perhaps inadvertantly - in favour of other parties.
 
In such a case, the other parties might in future exercise their real options ''against'' the interests of the owners, causing losses to the owners.
 
Such real options in favour of other parties are ''liabilities'' of a project or business, and ''reduce'' the total net value of the project or business.




== See also ==
== See also ==
* [[Climate Action 100+]]
* [[CertFMM]]
* [[Climate benchmark]]
* [[Option]]
* [[Climate change]]
* [[Project appraisal]]
* [[Climate change: testing the resilience of corporates’ creditworthiness to natural catastrophes]]
* [[Real]]
* [[Climate Financial Risk Forum]]
* [[Real options valuation]]
* [[Climate liability risk]]
* [[Expansion option]]
* [[Climate physical risk]]
* [[Deferment option]]
* [[Climate risk]]
* [[Contraction option]]
* [[Climate transition risk]]
* [[Termination option]]
* [[Consortium]]
* [[Abandonment option]]
* [[Financial institution]]
* [[Paris Agreement]]
* [[Risk]]
* [[Risk management]]
* [[Risk Management Association]]




==External link==
=== Other resources ===
*[https://www.rmahq.org/climate-risk-consortium?gmssopc=1 RMA's Climate Risk Consortium - about us]
* [[Media:2015_07_July_-_Hidden_treasure.pdf| Hidden treasure, The Treasurer, 2015]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 19:47, 20 November 2015

Real options are the valuable operational choices available to the owners of projects and of businesses.

For example, the options to expand, contract, defer or abandon the project (or business).


The existence of valuable real options in favour of the owners generally increases the total value of a project or business.

For this reason a real options analysis of a proposal may in some cases result in a decision to proceed with the project, in circumstances where other project evaluation techniques would have led to rejecting the proposal.


However, it is also possible that a proposal may grant real options - perhaps inadvertantly - in favour of other parties.

In such a case, the other parties might in future exercise their real options against the interests of the owners, causing losses to the owners.

Such real options in favour of other parties are liabilities of a project or business, and reduce the total net value of the project or business.


See also


Other resources

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