XDI delivers Physical Risk Assessment Platform to banks in Hong Kong

Authorized Institutions (AIs) in the Hong Kong Special Administrative Region (HK SAR) can now access instant, on demand physical climate risk analysis thanks to a new platform launched today. 

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The Physical Risk Assessment Platform is the result of a collaboration between XDI, the Hong Kong Monetary Authority (HKMA) and KPMG Advisory (Hong Kong) Limited, harnessing XDI’s cutting edge technology to make physical climate risk analysis securely available at the touch of a button for banks.

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It is the first initiative of its kind at this scale in the international banking sector. The Hong Kong banking sector has begun strengthening its climate risk management framework, but overall it still faces numerous challenges, in particular a lack of physical risk-related data and analytical tools for conducting climate risk assessments and stress tests. To make it easier for the industry to obtain granular data for conducting physical risk assessments and to improve the industry’s capability in understanding and assessing physical risks, HKMA collaborated with XDI and KPMG to develop a cloud-based platform  to assist the industry in assessing the potential impact of physical risks on residential and commercial buildings in Hong Kong under different climate scenarios.

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The HKMA Physical Risk Assessment Platform draws on XDI's core climate risk platform - the XDI Climate Risk Hub and works in the following way: 

• It is an online, cloud-based platform that all AIs in the HK SAR can access for free. 
• AIs can run risk assessments on residential and commercial buildings in Hong Kong under multiple climate scenarios, with risk ratings provided. 
• Data can be exported to facilitate easy integration into reporting documents. 

“It’s been a privilege to collaborate with the HKMA and push the boundaries of technology to deliver XDI’s data-driven insights through a platform that puts individual banks in the driving seat,” says Philip Tapsall, Group Lead - Corporate and Finance Sector Engagement, XDI 

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Key use cases include stress testing, credit due diligence and portfolio management. 
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Later this year, XDI will launch the XDI Climate Risk Hub, which will be a critical step in its broader company mission to make high quality climate change data available to as many decision-makers as possible. 

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