Climate Risk and Scenario Analysis Training
A one-day working programme on the requirement that causes more difficulty than any other in IFRS S2: identifying climate-related risks and opportunities, assessing them through scenario analysis, and disclosing their current and anticipated financial effects. It is the disclosure that cannot be answered by pulling a number out of a system, because it asks the organisation to form and defend a view about its own future.
The programme is deliberately practical about proportionality. A commensurate-with-capabilities approach means a mid-sized Malaysian company is not expected to run the modelling a global bank runs, but it is expected to do something structured and to explain what it did. Participants work through a qualitative scenario analysis on their own business during the day and leave with a documented first pass rather than a reading list.
HRD Corp SBL-Khas Claimable
Programme Agenda
9:00 AM - 9:15 AM
Welcome and Programme Overview
Introduction to the session, objectives, and housekeeping.
9:15 AM - 10:15 AM
What IFRS S2 Actually Asks For
The strategy and risk management requirements in plain terms, and how scenario analysis sits inside them. The concept of climate resilience, the disclosure of current and anticipated financial effects, and the connectivity expected between climate disclosures and the financial statements. What proportionality and the commensurate-with-capabilities provision mean for a company that is not a financial institution.
10:15 AM - 10:30 AM
Break
10:30 AM - 11:30 AM
Physical Risk in the Malaysian Context
Acute and chronic physical risk: flooding, extreme rainfall, heat stress, water stress, sea level rise and their effect on sites, workforce, logistics and supply. Locating your own assets and your key suppliers' assets against exposure, and the distinction between hazard, exposure and vulnerability. Working with the data sources that exist rather than waiting for perfect ones.
11:30 AM - 12:30 PM
Transition Risk and Opportunity
Policy and legal, technology, market and reputational transition risks. Carbon pricing, border adjustment mechanisms, customer decarbonisation requirements flowing down supply chains, energy cost and grid mix, and access to capital and insurance. Identifying the opportunities on the same axes, since the standard requires both.
12:30 PM - 1:30 PM
Lunch
1:30 PM - 2:15 PM
Choosing Scenarios and Time Horizons
Why a single forecast is not scenario analysis. Selecting a small set of contrasting scenarios, typically one aligned to a low-carbon transition and at least one higher-warming pathway, and drawing on published reference scenarios such as those from the NGFS and the IEA rather than building from scratch. Setting short, medium and long-term horizons that match the organisation's planning and asset life, and justifying those choices in the disclosure.
2:15 PM - 3:15 PM
Running the Analysis
Working from qualitative narrative to semi-quantitative ranking to quantified financial effect, and being honest about which one you are doing. Identifying the business drivers a scenario would move, estimating direction and magnitude, and testing whether existing strategy holds. Participants run a structured qualitative analysis on their own organisation using a supplied worksheet.
3:15 PM - 3:30 PM
Break
3:30 PM - 4:15 PM
From Analysis to Disclosure and Into ERM
Turning the work into disclosure language that is specific without over-claiming precision. Describing the resilience assessment, the assumptions and their limitations. Connecting climate risk into the existing enterprise risk management framework, the risk register and the board risk committee, so that it is governed rather than reported. Avoiding the two failure modes: a generic climate narrative, and a spuriously precise number.
4:15 PM - 4:45 PM
Review and Next Iteration
Participants review their draft analysis, identify what would need to be true to move to a quantified assessment next cycle, and agree owners.
4:45 PM - 5:00 PM
Wrap-Up and Q&A
Key takeaways, next steps, and close.
Key Outcomes
- Explain what IFRS S2 requires on strategy, risk management, scenario analysis and climate resilience
- Identify material physical and transition risks and opportunities for their own business
- Select contrasting scenarios and defensible time horizons, drawing on published reference pathways
- Run a structured qualitative scenario analysis and know what would be needed to quantify it
- Draft disclosure language that is specific about method, assumptions and limitations
- Connect climate risk into the existing enterprise risk management framework and governance chain
Training Mode Physical / Online / Hybrid / e-learning
HRD Corp SBL-Khas Claimable
Level Intermediate, suitable for risk, strategy, finance, sustainability and operations leads, and for board and management members with oversight responsibility
Duration 1 Day (8 Hours) | 9:00 AM to 5:00 PM
Venue In-house at the client's premises, or delivered via the client's preferred platform (Microsoft Teams, Zoom, or equivalent)
Assessment 10 to 15 question knowledge assessment covering all modules
Certificate Certificate of Completion issued to all participants upon full attendance