Transition risk

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1. Climate change - financial risks.

Abbreviation for climate transition risk, being financial risks that could arise from adjusting to a lower-carbon economy and net zero emissions.

In this context, financial climate transition risks are 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 risk refers to the risks arising before, during and after the discontinuation of LIBOR and similar rates, and their replacement by other risk-free interest rates.

These transition risks arise for non-financial corporates, and for financial institutions themselves, for example in relation to conduct.

3. Other contexts.

Any risk arising in relation to any kind of transition.

See also

External link