[Webinar]Compound Risks: Combining COVID and Climate Shocks in Macroeconomic Models for Stronger Financial Resilience

The World Bank Group’s (WBG) Crisis and Disaster Risk Finance (CDRF) team hosted and convened Compound Risks: Combining COVID and Climate Shocks in Macroeconomic Models for Stranger Financial Resilience, a webinar which convened a curated group of macro-economists globally. Marcello Estevão, Global Director, Macroeconomics, Trade and Investment (MTI) Global Practice, WBG, opened the session which was chaired by Olivier Mahul, Practice Manager, Finance, Competitiveness and Innovation (FCI) Global Practice, WBG. Keynote Speaker, Irene Monasterolo, Assistant Professor of Climate Economics and Finance, Vienna University of Economics and Business, presented a model for compound risk assessment focusing on how risk can compound in the nexus of non-linear interactions among pandemic, climate change and finance with corresponding country examples featuring Jamaica, the Philippines, Kenya and Indonesia. Her research results highlighted that compound risk can lead to a significant underestimation of losses, which can be amplified by various economic/financial/fiscal transmission channels.

The keynote was followed by a panel discussion moderated by Nicola Ranger, Senior Technical Specialist, FCI Global Practice, WBG and featured:

• Modeling COVID-19, and natural disasters, presented by Andrew Burns, Lead Economist, Macroeconomics, Trade and Investment (MTI) Global Practice, WBG
• COVID, climate and natural hazards: Multi-dimensional assessment of compound risks in pilot countries, presented by Jan Rielaender, Head, Multidimensional Country Review (MDCR), OECD
• Compound risks and relevant approaches in the Financial Sector Assessment Program (FSAP), presented by Vikram Haksar, Assistant Director, Strategy Policy and Review Department, IMF
• Opportunities and challenges of central banks facing the potential impact of COVID and climate change, presented by Theresa Lober, Head of Climate Hub, Bank of England

Over 250 participants joined the webinar and online discussions through the Disaster Risk Finance Community of Practice. Please click here to access the presentation from the webinar.