FIS, a global leader in financial technology, has launched the Climate Risk Financial Modeler, a new SaaS risk offering designed to help businesses across all industries assess, reduce, and report their exposure to the physical risks of climate change.
The FIS Climate Risk Financial Modeler leverages FIS’ robust risk modeling and market-leading insurance analytics, harmonising client data with third-party climate data. The solution, hosted on a new interface, is tailored to the risk management needs of corporates and financial institutions, aiming to provide proactive foresight into potential climate-related risks.
FIS head of treasury and risk JP James said, “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.
“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.”
The importance of the Climate Risk Financial Modeler is underscored by data from the World Economic Forum, which estimates that climate change and its effects could cause between $1.7trn and $3.1trn in damages per year by 2050. This includes damages to infrastructure, property, agriculture, and human health. Corporations of all sizes and industries are expected to be impacted, leading regulators worldwide to increase climate-related reporting and stress testing requirements.
By adopting FIS’ Climate Risk Financial Modeler, clients can gain a comprehensive assessment of their operations, investments, and strategic positioning from a climate risk perspective, and support their climate-related regulatory compliance efficiently.
FIS’ Climate Risk Financial Modeler allows users to perform detailed modeling on various weather-related perils at local and global levels, project potential financial losses from severe weather events, and determine the impacts of climate change on their operations. The solution utilises data from PwC US and readily available information on a firm’s physical assets, such as buildings and contents, along with global climate data, to perform relevant calculations.
PwC US global risk modeling services leader Richard de Haan said, “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.”
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