Non-transferable risk and Transition: Difference between pages

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Non-transferable risks are risks which must be borne by an organisation.  
1. ''Climate change - financial risks''.


Abbreviation for climate transition, relating to financial risks that could arise from adjusting to a lower-carbon economy.


Non-transferable risks might be avoided or accepted and retained or reduced as appropriate.  
In this context, financial climate transition is distinct from the direct physical risks of climate change.


In the case of non-transferable business risks (which by definition are not avoided) it is important that the organisation has a distinctive competence in the relevant areas.


For example, a pharmaceutical company's non-transferable risks would include the risk that failure to gain approval for use of a new drug means that the research and development costs have been wasted.
2. ''Risk-free rates - LIBOR and related transitions - conduct.''


In the context of risk-free rates, transition refers to the discontinuation of LIBOR and similar rates, and their replacement by other risk-free interest rates.
This transition is important both for non-financial corporates, and for financial institutions themselves, for example in relation to conduct.
3. ''Other contexts.''
Any other substantial and long term change.
Especially one carrying material risks and financial risks.




== See also ==
== See also ==
* [[Committed risk]]
* [[Climate change]]
* [[Pharmaceuticals]]
* [[Climate Transition Benchmark]]
* [[Risk management]]
* [[Climate Transition Finance Handbook]]
* [[Transferable risk]]
* [[Climate transition risk]]
* [[Uncommitted risk]]
* [[Conduct]]
* [[ESG transition]]
* [[Fallback]]
* [[Financial Stability Board]]
* [[Fossil fuel]]
* [[IBOR transition]]
* [[Just transition]]
* [[LIBOR]]
* [[LIBOR transition]]
* [[Material]]
* [[Paris Agreement]]
* [[Reputational risk]]
* [[Risk-free rates]]
* [[Stranded assets]]
* [[Synthetic LIBOR]]
* [[Tough legacy]]
* [[Transaction]]
* [[Transformation]]
* [[Transition finance]]
* [[Transition Pathway Initiative]]  (TPI)
* [[Transition plan]]
* [[Transition Plan Taskforce]] (TPT)  - UK
* [[Transition risk]]
* [[Transition sukuk]]
* [[Translation]]
 
 
== External link ==
* [https://www.bankofengland.co.uk/knowledgebank/climate-change-what-are-the-risks-to-financial-stability Climate change - What are the risks to financial stability? Bank of England]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 07:25, 28 September 2022

1. Climate change - financial risks.

Abbreviation for climate transition, relating to financial risks that could arise from adjusting to a lower-carbon economy.

In this context, financial climate transition is distinct from the direct physical risks of climate change.


2. Risk-free rates - LIBOR and related transitions - conduct.

In the context of risk-free rates, transition refers to the discontinuation of LIBOR and similar rates, and their replacement by other risk-free interest rates.

This transition is important both for non-financial corporates, and for financial institutions themselves, for example in relation to conduct.


3. Other contexts.

Any other substantial and long term change.

Especially one carrying material risks and financial risks.


See also


External link

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