The UK’s largest risk analytics consultancy, 4most, has become Yorkshire Building Society’s (YBS) preferred partner, supporting the development of its portfolio climate change risk assessment.
The new partnership adds to the expanding efforts many lenders are making to manage and monitor the impact of climate change across their lending businesses. 4most is supporting YBS with the development of climate risk models that interlock with existing provision and capital engines, and risk appetite. The work undertaken will meet the PRA’s climate change requirements but ultimately it will help to drive improved strategic decision making in the transition towards a low carbon economy.
Rob Purdy, head of Balance Sheet Management at Yorkshire Building Society, explained,
“Fundamentally, 4most offers a transparent approach that enables the embedding of climate change risk management into existing credit risk models and processes. With its interdisciplinary analytics expertise, 4most is well placed to support the assessment of the new risks being faced such as climate change, something that is of growing importance to lenders.”
4most’s client partner for climate change, Ivelina Nilsson, added,
“Our primary goal is to support lenders to develop lasting capability to meet the new climate change requirements. Our approach focuses on delivering a pragmatic answer to how climate and core credit processes and measurement can be integrated. With our expertise across these fields, we are in an excellent position to support the implementation of climate change risk management, in a way that is empowering to organisations.”