Evaluating Credit Risk in the Face of Climate Challenges

In today's global business landscape, credit insurers play a crucial role in facilitating transactions and protecting companies' cash flows against client default. Effective risk management requires anticipating difficulties through prevention. Recent events like the COVID-19 pandemic, armed conflicts, and climate-related catastrophes have shown that extreme risks may become more frequent due to human activities and consumption leading to global warming. As the Earth's temperature has risen, the twenty-first century has seen an increase in extreme weather conditions worldwide.