FIS®, a global leader in financial technology, has announced the launch of its Climate Risk Financial Modeler. This new SaaS risk tool is designed to help businesses across all industries assess, mitigate, and report their exposure to the physical risks posed by climate change.
Leveraging FIS’s advanced risk modeling and leading insurance analytics, the Climate Risk Financial Modeler integrates client data with third-party climate data. It features a new interface specifically tailored to the risk management needs of corporations and financial institutions, aiming to provide proactive insights into potential climate-related risks.
“The launch of the FIS Climate Risk Financial Modeler is the latest chapter in our long history of market – leading risk management software and services throughout the money lifecycle,” said JP James, Head of Treasury and Risk at FIS. “Corporate climate risk and the related regulatory pressures are becoming increasingly important for executives and risk managers of all levels and across all industries. With this launch, FIS is building on our best-in-class insurance risk application capabilities to respond to the challenges our clients face in understanding the potential impacts of climate change on their business.”
Why The Climate Risk Financial Modeler Matters
The World Economic Forum estimates that climate change and its impacts could cause between $1.7 trillion and $3.1 trillion in annual damages by 2050, affecting infrastructure, property, agriculture, and human health. Businesses of all sizes and industries are expected to be impacted, prompting global regulators to increase climate-related reporting and stress testing requirements.
Adopting FIS’ Climate Risk Financial Modeler allows clients to effectively assess their operations, investments, and strategic positioning from a climate risk perspective, while also supporting their climate-related regulatory compliance.
How The Climate Risk Financial Modeler Works
FIS’ Climate Risk Financial Modeler enables users to conduct powerful modeling of various weather-related risks on both local and global scales. It projects potential financial losses from severe weather events and evaluates the effects of climate change on operations.
The solution integrates data from PwC US with information on a firm’s physical assets, such as buildings and contents, along with global climate data, to perform comprehensive risk calculations.
“PwC’s climate risk modeling services team takes pride in helping companies make informed, predictive decisions around escalating climate risks. By providing a dataset that underpins FIS’ Climate Risk Financial Modeler, our team is helping to empower businesses of all sizes and sectors to shore up their operations against extreme weather events, address climate reporting requirements, and drive efficiency and sustainability.” Richard de Haan, Global Risk Modeling Services Leader. PwC US
