Liquidity risk and Net-Zero Insurance Alliance: Difference between pages

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Liquidity is access to cash, and liquidity risk revolves around fluctuations in the ability to access cash when it is needed.
''Environmental concerns - emissions - financial sector - United Nations''.
It is very difficult to find a universally accepted definition of liquidity risk.  


However, it is commonly accepted that liquidity risk comes in two forms: i. Funding liquidity risk and ii. Market liquidity risk.
(NZIA).


:i. Funding liquidity risk is defined as a company’s inability to obtain funds to meet cashflow obligations.
The Net-Zero Insurance Alliance is a global group of insurers and reinsurers committed to transition their underwriting portfolios to net-zero greenhouse gas emissions by 2050.


:ii. Market liquidity risk refers to the risk that market transactions will become impossible due to market disruptions or inadequate market depth.


The two forms cross over however.
The NZIA was established in July 2021.


For example if commercial paper or bond markets dry up that is market risk, which will immediately become funding risk if the borrower has insufficient committed bank facilities to act as a stop gap.
It is convened by the United Nations Environment Programme Finance Initiative's Principles for Sustainable Insurance.




== See also ==
== See also ==
* [[Cash]]
* [[Adaptation Action Coalition]]
* [[Liquidity]]
* [[Adaptation communications]]
* [[Business Ambition for 1.5C]]
* [[Carbon-neutral]]
* [[Climate-related disclosure]]
* [[COP26]]
* [[Emissions]]
* [[Environmental concerns]]
* [[ESG investment]]
* [[Glasgow Financial Alliance for Net Zero]]  (GFANZ)
* [[Green bond]]
* [[Green Bond Principles]]
* [[Greenhouse gas]]
* [[Insurance company]]
* [[Nationally determined contribution]]
* [[Net zero]]
* [[Net-Zero Asset Managers initiative]]  (NZAM)
* [[Net-Zero Asset Owner Alliance]]  (NZAOA)
* [[Net-Zero Banking Alliance]] (NZBA)
* [[Paris Agreement]]
* [[Paris Aligned Investment Initiative]] (PAII)
* [[Pension fund]]
* [[Principles for Responsible Investment]]  (PRI)
* [[Principles for Sustainable Insurance]]  (PSI)
* [[Race To Zero]]
* [[Resilience]]
* [[Road to Zero]]
* [[Transition]]
* [[Underwriting]]
* [[United Nations]]
* [[United Nations Environment Programme]]
* [[United Nations Environment Programme Finance Initiative]]
* [[United Nations Framework Convention on Climate Change]]
* [[Zero emissions]]




==Other links==
==External link==
[http://www.treasurers.org/node/5644 Liquidity risk management, Will Spinney, ACT 2010]
*[https://www.unepfi.org/net-zero-insurance/ About the NZIA]


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

Revision as of 13:09, 1 November 2021

Environmental concerns - emissions - financial sector - United Nations.

(NZIA).

The Net-Zero Insurance Alliance is a global group of insurers and reinsurers committed to transition their underwriting portfolios to net-zero greenhouse gas emissions by 2050.


The NZIA was established in July 2021.

It is convened by the United Nations Environment Programme Finance Initiative's Principles for Sustainable Insurance.


See also


External link

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