ESG Risk Management
ESG Risk Management
ESG Risk Management
Course Overview
ESG Risk
Identifying, Assessing, and Controlling Environmental, Social, and Governance Risk
Learn to recognize an ESG risk, trace how it transmits into credit, operational, legal, and reputational loss, and prioritize it against everything else on the risk register. The course covers identification across the three pillars, climate and nature risk, third-party exposure, stress testing, mitigation controls, and the reporting that keeps boards accountable.
What You Will Learn
The main objectives of the course are:
- Define ESG risk and how it becomes financial loss.
- Contrast ESG risk with traditional risk profiles.
- Identify environmental risks across climate, resources, and nature.
- Assess social risks using salience and value-chain mapping.
- Evaluate governance risks in structure, incentives, and conduct.
- Score and prioritize ESG risks by materiality.
- Quantify physical and transition climate risk.
- Manage supply chain and third-party ESG exposure.
- Apply the TNFD LEAP approach to nature risk.
- Run NGFS-based scenario analysis and stress tests.
- Integrate ESG risk into the enterprise risk register.
- Build controls, assurance, and board oversight routines.
Who Should Enroll
This certificate is designed for risk managers, internal auditors, compliance officers, ESG and sustainability leads, credit and investment risk analysts, procurement and supplier risk teams, legal counsel, insurers, and board members with risk oversight duties.
Skills You Will Build
- ESG Risk Identification
- Risk Scoring
- Climate Risk Analysis
- Third-Party Due Diligence
- Nature Risk Assessment
- Scenario Stress Testing
- Control Design
- Risk Register Integration
- Litigation Risk Awareness
- Board Reporting
- Risk Materiality Judgement
- Enterprise Risk Integration
- Value-Chain Exposure Mapping
- Quantitative Risk Estimation
- Regulatory Horizon Scanning
- ESG Data Evaluation
- Mitigation Planning
- Accountability Assignment
- Continuous Monitoring
- Assurance Readiness
Course Outline – ESG Risk Management
Module 1: Understanding ESG Risk
- What ESG Risk Is
- Why ESG Risk Became Material
- How to Recognize an ESG Risk
- ESG Risk in Practice: From Event to Loss
Module 2: ESG Risk vs Traditional Risk
- What Makes ESG Risk Different
- How ESG Risk Transmits Into Traditional Risk
- The Risk Profile: Velocity, Horizon, and Measurability
- Fitting ESG Risk Inside Enterprise Risk Management
Module 3: Identifying Environmental Risks
- The Landscape of Environmental Risk
- Physical and Transition Climate Risk
- Resource Scarcity and Supply-Chain Exposure
- Pollution, Waste, and Nature-Related Risk
Module 4: Identifying Social Risks
- What Counts as a Social Risk
- Salience: Prioritising by Harm, Not by Profit
- Mapping Exposure Across the Value Chain and Geography
- Screening and Prioritising Identified Risks
Module 5: Identifying Governance Risks
- What Counts as a Governance Risk
- Governance Risk Is a Board-Level Duty
- Structural Governance Risk: Board, Ownership, and Incentives
- Conduct Risk: Ethics, Bribery, and Corruption
Module 6: Materiality & Risk Prioritization
- What Materiality Means for ESG Risk
- Running a Materiality Assessment
- Scoring and Prioritizing Risks
- Materiality in Practice: From List to Decision
Module 7: Climate Risk: Physical & Transition
- The Two Faces of Climate Risk
- Physical Risk: Acute Shocks and Chronic Shifts
- Transition Risk: Policy, Technology, Market, Reputation
- Quantifying and Diagnosing Climate Financial Risk
Module 8: Supply Chain & Third-Party Risk
- Where the Risk Really Lives: The Value Chain
- The Multi-Tier Visibility Problem
- Controls: Codes, Audits, and Due Diligence
- The Regulatory Turn: Mandatory Due Diligence
Module 9: Nature & Biodiversity Risk (TNFD)
- Why Nature Is a Balance-Sheet Risk
- The LEAP Approach: Locate, Evaluate, Assess, Prepare
- The TNFD Disclosure Framework
- From Disclosure to Action: Metrics, Data, and Transition
Module 10: Scenario Planning & Stress Testing
- Why Forecasts Fail: The Case for Scenarios
- The Reference Set: NGFS Scenarios
- Running a Stress Test: From Narrative to Numbers
- Reading the Results: Supervisory Tests, Gaps, and Judgment
Learn at your convenience
*Note: These are self-paced courses, allowing learners to study independently at their own pace.
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