A Harbinger of Things to Come? New York DFS Outlines Expectations for Regulated Entities on Financial Risks Arising from Climate Change

The New York State Department of Financial (DFS) Services becomes the first U.S. regulators of financial institutions to publish expectations for regulated financial institutions to address climate change risk management. Financial institutions are expected to perform enterprise-wide assessments of the impact of climate change in areas including credit risk, market risk, liquidity risk, operational risk, reputational risk and strategy risks.