Climate Related Financial Risk Directive, November 2024

Climate – Related Financial Risk Directive, Bank of Ghana

November 2024

 

1. Purpose
2. Duration
3. Who should take this course?
4. Certification
5. Interactive Demo
6. Course Content
7. Aims of the Course
8. Assessment
9. Who Benefits
10. Approval and Accreditation
11. Requirements

 

1. Purpose

The Climate-Related Financial Risk Directive, 2024 apply to all licensed Banks, Specialised Deposit–Taking Institutions, Financial Holding Companies, Development Finance Institutions, Mortgage Finance Companies and Leasing Companies in Ghana. This Directive seeks to ensure that Regulated Financial Institutions (RFIs):

a) understand and mitigate against potential impact of climate-related financial risks on their business model and strategy;

b) implement appropriate governance and risk management practices to effectively identify and manage climate-related financial risks;

c) remain financially resilient under severe, yet plausible, climate risk events, and operationally resilient to disruptions due to climate-related disasters;

d) integrate the management of climate-related risks into their Environmental, Social and Governance (ESG) initiatives which have a significant bearing on corporate investment decision-making processes;

e) address any weaknesses in the management of material climate-related physical and transition risks which can adversely impact safety and soundness as well as the stability of the overall financial system;

f) understand BOG’s supervisory expectations on the approach that should be taken in the management and disclosure of climate-related financial risks; and

g) disclose the impact of climate-related financial risk drivers (physical and transition risks) on risk management, strategy, governance and regulatory capital to enhance market discipline.

h) the Directive is particularly aimed at creating transparency regarding BOG’s view on a prudent approach to the management and disclosure of climate-related financial risks.

The BOBE product and value proposition makes it easy and convenient for Banks to meet this regulatory requirement by developing and consolidating the needed capacity building, while at the same catalyze the scope for aligning the Directives with the priority businesses and operational activities of banks. BOBE provides benchmarked, approved, best practice Climate – Related Financial Risk training in a standardized training environment accessible on-line through an e-learning system. The BOBE online Climate – Related Financial Risk training course is designed to help Banks and their staff integrate the Climate – Related Financial Risk into their risk management practices, ESG initiatives as well as aid their periodic Bank of Ghana prudential returns. The BOBE e learning training is dynamic with the flexibility to evolve and adapt to changes regulators may impose.

 

2. Duration

There’s six (6) months access for individuals and one (1) year time limit for institutions, in which you must complete the course. The limit for completion depends on your subscription. Access period is negotiable.

 

3. Why this course?

Banks are required to incorporate the Climate-Related Financial Risks ESG initiatives, and disclose the impact of climate-related financial risks drivers on risk management, strategy, governance, and regulatory capital to enhance market discipline. All regulated financial institutions are required to comply with this directive. The effective implementation date of this Directive shall be 1st January 2026 in the case of banks and 1st January 2027 in the case of SDIs and NBFIs.

 

4. Who should take this course?

The courses have been designed to assist implementing banks with the practical application of the Climate-Related Financial Risk. The course is are intended to bring the Directives to life, by describing both the relevance of each provision to the banking sector and the practical steps that banks can take to begin their journeys towards implementation. Transition to Net-Zero plans have also been prepared for banks to comply. The following should take this course.

 

• The Board, management and staff of all banks,
• Specialised Deposit–Taking Institutions,
• Financial Holding Companies,
• Development Finance Institutions,
• Mortgage Finance Companies
• Leasing Companies in Ghana.
• Banks’ counterparties
• Central bank examiners
• Lawyers
• Auditors
• Accountants
• ESG Trainers and practitioners
• Sustainability Trainers

 

 

 

 

 

5. Certification

Certification is instant & online. Learners can print off a high quality, personalized certificate as record of training on successful completion of the course. There is also the option of directing all of the certificates to a pre-determined individual e.g. the HR or Compliance manager to be used to provide evidence for compliance and audit.

 

6. Interactive Demo

If you wish to try this course then register for a demo by clicking the 'interactive demo' button. You will be given the option to purchase and continue with your course at the end of your demo!

 

7. Course Content

Principles

• Overview of Climate-Related Financial Risk
• Corporate Governance
• Internal Control Framework
• Internal Capital and Liquidity Adequacy
• Risk Management Process
• Management Monitoring and Reporting
• Comprehensive Management of Climate-Related Financial Risk
• Scenario Analysis
• Disclosure of Climate-Related Financial Risk
• Regulatory Reporting of Climate – Related Financial Risk
• Climate – Related Transition Plans
• Implementation Roadmaps
• NGFS Reference Climate Scenarios

 

8. Aims of the Course

By the end of the course, you will be able to explain the concepts of the Climate-Related Financial Risk Directives. To provide a “Best in Class”, best practice approach which will ensure that “Banks” practical application of Climate-Related Financial Risks Directives. Bank staff will be able to explain the relevance of each Provision to the banking sector and the practical steps that banks can take for implementation.

 

9. Assessment

The online assessment is taken on completion of the training material. Learners will be asked 40 multiple choice questions with a pass mark of 80%. The answers are marked automatically so learners will instantly know whether they have passed. Learners can take the test two (2) times as they need to pass within the period of the purchased course at no extra charge.

 

10. Who benefits?

The advantages and benefits of this approach of delivery of the Climate-Related Financial Risk Directives are significant for all Banks, SDIs other Regulated Financial Institutions, Banking Supervisory authorities, Banks, learners, etc

 

11. Approval and Accreditation

All of our courses are accredited by the CPD Certification Service as conforming to universally accepted Continuing Professional Development (CPD) guidelines.

 

12. Requirements

• Basic computer
• No degree needed
• Basic fundamentals of law, banking and finance, accounting & administration

 

13. Useful links

• bog.gov.gh
• mofep.gov.gh
• https://www.bog.gov.gh/wp-content/uploads/2024/11/BOG-Climate-Related-Financial-Risks-Directive.pdf
• https://www.bis.org/bcbs/publ/d517.pdf