Risk Management
Overview
MAS has published clear supervisory expectations on environmental risk management to help set the pace for FIs to uplift their practices to assess, monitor and mitigate their exposures to environmental risk. We will continue to engage FIs to bolster their resilience to environmental risks, and to work with FIs on maturing data, risk metrics and methodologies used for risk assessment.
Industry-Wide Stress Test (IWST) 2024
Enhancing FIs’ and MAS’ capabilities in conducting climate scenario analysis exercises remains a key strategy in bolstering the industry’s resilience against climate risks.
In 2024 and 2025, MAS has focused its efforts on climate physical risks. For instance, MAS conducted an Industry-Wide Stress Test in 2024 to assess the vulnerabilities of FIs to climate physical risks, including when such risks compounded by macroeconomic stresses.
To promote wider industry upskilling, MAS will conduct capability building workshops in collaboration with the Singapore Sustainable Finance Association (SSFA).
MAS continues to strengthen our internal climate scenario analysis capabilities by working with external consultants and relevant international organisations to develop and improve our stress testing models and enhance data collection.