ESG Risk Assessment, Culture Audit
and Climate Risk Management
19 - 23 June 2023
Nairobi - Kenya
Register Now! Limited Seats Available!
R17,999.00 Per Delegate
Bank’s Boards and Senior Executives have now wholly accepted the importance of ESG issues as an urgent organisational imperative. Banks know they must now move from making ESG pledges, to taking sustainable action.
As the world seeks to address climate change and environmental threats, assurance of the sustainability of the bank, including how Boards and Senior Executives are leading the transition to a lower carbon economy, is crucial. It also linked to how well they support management and staff in championing the transformation of bank culture, policies, strategies and practices, in response to new and challenging ESG and climate-related priorities.
Customers, governments, regulators, investor groups and key stakeholders are pushing harder for bank governing bodies and Senior Executives to now embrace complex ESG concepts, respond to new ESG reporting and regulatory requirements, and demonstrate that they are managing ESG related risks whilst responding positively to emerging opportunities to add long-term value.
The importance of Culture Audit will also be addressed in this course. This session will examine what we mean by culture, how this differs from the control environment and behaviour, and how to approach culture in a practical way.
On completion, you will be able to:
- Understand ESG, sustainability and climate change concepts and global drivers
- Outline international and local standards, requirements and laws
- Meet ESG and climate-related financial disclosure reporting requirements
- Develop a balanced portfolio of ESG policies and strategies to deliver sustainable environmental and societal impacts
- Reassess the expectations of bank shareholders and private investors, and assess risks and new opportunities around raising capital for sustainable investment
- Direct a strategic review of sectoral and client lending and lead the dialogue with clients around their green transition plans
- Manage ESG risk through an enhanced risk governance and integrated assurance framework
- Undertake reviews of bank governance, board and senior executive effectiveness
- Understand the key elements of culture and the different foundations to assess this
- Understand the difficulties in any assessment methodology including issues around sub-cultures and behaviours
- Consider the way culture interacts with other governance, risk, assurance and compliance processes
- Understand the different ways to approach a cultural audit
- Understand robust ways to think about culture when auditing other matters
Session One – ESG Risk assessment
- Corporate Governance in banks – standards, codes and frameworks, roles and behaviours, trends and the global context of ESG, Sustainability and Climate Change
- ESG implications for banks: compliance, standards, reporting requirements, strategic re-assessment, business risk and opportunities
- Task force for Climate-related Financial Disclosures (TCFD) – key tenets and implications for banks
- Understanding ESG/Green stakeholder perspectives and managing green stakeholders
- Understanding the bank’s exposure to environmental, physical climate, social, societal and transition risks
- Driving the green transition
- Leading key client engagement around ESG transition plans
- Adapting risk governance and integrated assurance frameworks for ESG and climate risk
- Assessing senior team performance and effectiveness against ESG criteria and expectations; adapting competency framework and succession plans to ESG factors
Session Two – Climate Risk
This session will focus on the latest evidence, the toolkit elements required to measure climate-related risks, and how these can be implemented in practice. Through the programme participants will be provided with an understanding of:
- Introduction to Climate Risk
- Climate-related physical risk
- Climate-related transition risk
- Climate-related legal risk
- The use of data for analyZing risk
- Scenarios for climate and energy transitions
- The latest theories on measuring climate-related risk
- The roles and expectations of regulators
- Means to navigate climate-related financial risk
Session Three – Auditing Culture
Risk and control issues are increasingly attributed to cultural weaknesses. This session will examine what we mean by culture, how this differs from the control environment and behaviour, and how to approach culture in a practical way. However, auditors should understand this course will not “sell” a particular approach to auditing culture, but rather it will equip auditors to be able to think practically about how to think about cultural and behavioural issues.
- Definitions and models of culture – understanding that culture is not “soft”
- Where does culture come from?
- The psychology of decision making and how this may be influencing culture
- Sub-cultures – country cultures and behaviours
- Group dynamics and politics
- Taking a systemic approach to understanding organisational levers that influence culture
- Differences between the espoused and real culture – understanding defensive routines.
- Why is culture hard to measure?
- Biases surrounding staff surveys of culture – question selection, responses and action planning
- The link between risk appetite and risk culture and the problem of finding suitable criteria when looking into cultural issues.
- Understand the IIA guidance on auditing culture (which James contributed to)
- Practical approaches and good practices
- Paying attention to audit behaviours and management attitude towards audits
- Root cause analysis and culture
- Thinking about the culture of the internal audit team and how it inter-relates with organisational culture
- Thinking critically how to deal with external consultants
- Practical first steps
- Looking ahead
- Recognising the limits of internal audit in this area – the risk of taking on a management role and of false assurance
- Models of organisational effectiveness that can be used as a way of approaching cultural issues.
End of the workshop
IN HOUSE AND ONLINE TRAINING
While both In-House and Online training can present with cost-effectiveness and time-efficacy, there are some very specific differences between in-house courses and those based online.
The demand for additional courses by individuals or groups of people is increasing. Still, it depends entirely on the preferences of a person what type of training he or she wants to receive. Online courses and in-house training carry some similarities but they are considered to exhibit some very pivotal differences too. Despite that, both types of learning can be really beneficial for attendees.