International Institute of Green Finance Published the First Research Findings of ¡°Environmental Stress Test for Fund and Insurance Asset Management¡±

Published£º2017-05-24    Source£ºNews Center   Views£º

 On April 15th, CUFE¡¯s International Institute of Green Finance published the academic results of ¡°Environmental Stress Test Methods for Fund and Insurance Asset Management¡±. This achievement was the first academic research finding of a systematic discussion on environmental stress test for fund and insurance asset management.

 International Institute of Green Finance¡¯s ¡°Environmental Stress Test Methods for Fund and Insurance Asset Management¡± analyzes whether the asset management company's portfolio is affected by environmental and climatic factors by using the famous capital asset pricing model (CAPM) in the academia, which is also called the sensitivity analysis. In this way, the changes in the value of stocks, bonds, and equity in an asset portfolio under the environmental stresses such as environmental and climatic events which may occur in the future could be simulated, followed by making quantitative estimates of the impact of environmental and climate risks on the return on portfolio investment of asset management companies. Finally, it will calculate the possible maximum risk value of the asset management industries when they are under extreme environmental and climate risks.