Bloomberg Invests in Riskthinking.AI

Companies enter strategic partnership to explore climate financial risk modeling

Bloomberg today announced an equity investment in leading climate financial risk data analytics provider, riskthinking.AI. The companies have also established a strategic partnership to explore the use of advanced technologies and risk modeling techniques to accelerate a deeper view into climate-related impacts on the financial system.

This investment comes at a critical time, as emerging regulations and investor pressure push financial institutions to better identify, assess and manage climate risks. This increases the demand for standard scenarios and granular data to assess the potential impacts of both physical and transition risk drivers, develop climate-specific stress-testing and improve the climate sensitivity and resilience of investment portfolios.

Until now, credible and complete data on climate risk factors for potential investors has been lacking—along with universal standards for measuring potential financial risk—leading to the use of deterministic rules in a stochastic environment. riskthinking.AI differs from traditional climate risk companies by enabling companies of all types to use consistent, science-based, and methodologically rigorous models to comprehensively measure and manage climate financial risks, in a way that helps companies become audit-ready.  This is powered by an extensive, continuously updated data series of climate risk, which riskthinking.AI uses to stochastically model and price financial risks across any assets, equities, corporates, industries, and sectors, anywhere in the world.

Dr. Ron Dembo, CEO and Founder, riskthinking.AI, said: “It is of critical importance to make sure assets are valued appropriately on the financial markets. Current climate financial risk assessment lacks crucial, universal metrics including environmental, political, social and carbon factors for each specific geographic location and relevant asset type. We expect that this partnership with Bloomberg will have a profound effect on future assessment of climate financial risk moving forward.”

“As investment managers look to understand the impact of climate risk in their portfolios, ready availability of high-quality data is the most critical factor, and also a significant challenge,” said Ben Macdonald, Global Head of Enterprise Product at Bloomberg.  “Bloomberg is committed to improving access to these data and helping managers adopt sensible protocols for modelling, measuring and managing climate risk.”

Read the full press release here: https://www.bloomberg.com/company/press/bloomberg-invests-in-riskthinking-ai-to-accelerate-the-availability-of-in-demand-climate-risk-data-and-analytics/