Risk Management
Overview
Building on the clear supervisory expectations we have set on environmental risk management, we continue to engage FIs to bolster their resilience to environmental risks, and to work with FIs on maturing data, metrics and risk assessment methodologies.
Building capabilities in stress testing and scenario analysis
Continue with efforts to enhance FIs’ and MAS’ capabilities in climate stress testing and scenario analysis so as to bolster the industry’s resilience against climate risks.
In 2025, MAS and the Singapore Sustainable Finance Association (SSFA) organised a workshop involving Singapore banks and technical experts to strengthen FIs’ capabilities in climate risk modelling, stress testing and scenario analysis, focusing on physical risk implications.
This year, MAS, with technical assistance from the IMF, is conducting a top-down climate scenario analysis, focusing on the impact of acute physical risks on FIs’ exposures.
Looking ahead, MAS will continue to strengthen its internal climate scenario analysis capabilities and engage the industry to support climate risk modelling efforts. MAS will continue to focus on physical risks, in light of the increasing frequency and severity of extreme weather events observed globally.