Resources Radio - Climate-Related Risks in the Financial Sector, with Kevin Stiroh

n this episode, host Margaret Walls talks with Kevin Stiroh, a senior fellow at Resources for the Future and a former senior advisor at the Federal Reserve. Pulling from his extensive career in the financial sector, Stiroh expounds on how financial institutions evaluate climate-related risks and the analysis necessary to address risks across loans, insurance, and investment portfolios. Stiroh emphasizes that sound banking practices require active collaboration between research and policy to navigate financial risks. As calculations of the macroeconomic impacts of climate change evolve, past research may be less relevant and accurate than newer studies on climate change as sources of information about climate-related financial risk and shocks. Effective risk management is in a bank’s best interest, Stiroh notes, and requires rigorous, credible economic research that informs durable policy solutions.