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CDM Physical Risk WG

Overview​

The Physical Risk Working Group is focused on integrating physical risk into the global banking system through an open-source framework. This initiative addresses the evolving nature of physical risk, which is transforming:

  • From a future consideration to an immediate driver of value: Requiring revaluation of existing exposures and repricing of new ones.
  • From an unquantified threat to a tradable asset: Facilitated by mechanisms like physical risk swaps.
  • From a peripheral concern to a core determinant of banking stability: Aiming to resolve the mismatch between long-term bank lending and short-term insurance underwriting.

As physical risks intensify, leading to increased insurance premiums and the potential for widespread market withdrawal of insurance, this group will outline how the financial system can swiftly adopt an open-source framework. This framework will accelerate the scalable and cost-effective integration of physical risk, helping to manage regional exposures to major hazards.

You can find more information about the Working Group proposal here: https://github.com/finos/common-domain-model/issues/3432.

Meetings​

Join us every second Tuesday at 2 PM EST / 9 AM BST. Email help@finos.org to be added to the meeting invites directly, or find the meeting in the FINOS Community Calendar.

Subscribe​

Subscribe to the Physical Risk Working Group mailing list.

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