> For the complete documentation index, see [llms.txt](https://docs.therisk.global/organization/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.therisk.global/organization/use-by/central-banks-and-supervisors.md). # Central banks and supervisors How central banks, banking and insurance supervisors and financial-stability authorities can use the Nexus programme: physical and cascading-risk evidence, scenario material and exercises that a super **Where this fits.** Audience: central banks, banking and insurance supervisors, financial-stability and market authorities. Sectors: all six, read through their transmission to the financial system. Pillars: Labs and Foundry (scenarios and models), Universe (the finance and insurance readiness track), Reports (the finance and insurance chapter), Standards (shared records). Institution: GRA, through the Financial Institutions and Regulators pathway. Offerings: O07 and O02. Kind: audience guide. ## In brief Central banks and supervisors now treat climate and nature-related risks as financial risks, and they test banks and insurers against scenarios of physical damage. Their difficulty is the physical side: how a flood or a drought travels through power, water, transport and supply chains before it reaches a borrower or a policyholder. The programme offers that missing layer: a model of how risks couple across sectors, sector dependency evidence, scenario material with stated uncertainty, and controlled exercises in which finance and insurance readiness is a planned track. A supervisor may choose to use any of it. Regulator participation confers no regulatory approval, no privileged access and no rating. ## What central banks and supervisors are trying to do | Task | Framework | What it asks for | | --------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | | Supervise climate-related financial risk | Basel Committee, *Principles for the effective management and supervision of climate-related financial risks* ([BCBS, 2022](https://www.bis.org/bcbs/publ/d532.htm)) | Eighteen principles, twelve for banks and six for supervisors, including scenario analysis | | Run climate scenarios | NGFS climate scenarios, Phase V ([NGFS, 2024](https://www.ngfs.net/system/files/import/ngfs/medias/documents/ngfs_scenarios_phase_v.pdf)) | Physical-risk damage functions, macroeconomic transmission and country detail | | Close data and analytical gaps | FSB roadmap for climate-related financial risks ([FSB, 2021](https://www.fsb.org/2021/07/fsb-roadmap-for-addressing-climate-related-financial-risks/)) | Disclosures, data, vulnerabilities analysis, and supervisory practices and tools | | Understand non-linear, cascading risk | *The green swan* ([Bolton et al., 2020](https://www.bis.org/publ/othp31.htm)) | Recognition that climate risks are fat-tailed and interact in cascades that backward-looking models miss | | Read disclosures with physical evidence behind them | IFRS S2 ([ISSB, 2023](https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/ifrs-s2-climate-related-disclosures/)); TNFD recommendations ([TNFD, 2023](https://tnfd.global/recommendations-of-the-tnfd/)) | Climate-related and nature-related risks and dependencies described consistently | ## What the programme offers | Need | What the programme provides | Where in the programme | | ------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- | | How a physical shock couples across sectors | Six sectors, their relations and the amplification a coupling adds, in eight teaching scenarios; labelled teaching values, not measurements | [Coupled risk](/organization/model.md) | | Sector dependency evidence | Sector dependency atlases, service-continuity options and residual uncertainties | O02 | | Exposure and protection-gap evidence | Exposure and protection-gap notes, scenario evidence and diligence questions, separating measured, estimated and unknown losses | O07, through [GRA](/organization/institutions/gra.md) | | A controlled place to test transmission | The finance and insurance readiness track of the [Nexus Universe](/organization/programme/universe.md) Action Week, with injects such as a parametric trigger crossed or a sovereign spread widening | [Universe finance-readiness programme](https://globalriskalliance.com/engagement/nexus-universe/) | | Published, correctable evidence | The finance and insurance chapter of the annual [Nexus Reports](/organization/programme/reports.md) flagship | Nexus Reports | | Records that institutions can exchange | Open standards for identifiers, metadata and risk records | [Nexus Standards](/organization/institutions/nexus-standards.md) | Every claim carries an evidence label: observed, officially reported, institution-reported, estimated, modelled, forecast, scenario, expert judgement, or unknown. Simulated results are never reported as observed impact. The first outcome of a study request is "a bounded exposure and protection-gap analysis with diligence questions". ## Routes that apply The Nexus Consortium model sets a route for each kind of participant: the action that opens it, the first outcome, the offerings that apply, and a boundary, quoted here as published ([How Nexus Consortium works](https://therisk.global/consortium/)). | Participant | Action | First outcome | Offerings | Boundary | | -------------------------------------------------------------- | -------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | | Banks, insurers, reinsurers, supervisors and financial centres | Request a finance-readiness or systemic-risk study | A bounded exposure and protection-gap analysis with diligence questions. | O07 Finance, Insurance and Development Readiness; O02 Sector and Critical-Infrastructure Resilience | "No underwriting, lending, capital or privileged regulator access is promised." | | Sector ministries, regulators and statutory agencies | Discuss a mandate-specific technical programme | A domain work brief, evidence requirements and agreed review and receiver responsibilities. | O02 Sector and Critical-Infrastructure Resilience; O05 Multi-Hazard and Anticipatory-Action Preparedness; O07 Finance, Insurance and Development Readiness | "Regulator participation confers no regulatory approval or privileged access." | ## Entry route * [Finance and insurance readiness](https://globalriskalliance.com/finance-readiness/) and the [Non-execution boundary](https://globalriskalliance.com/trust/regulated-boundaries/) on the GRA site * [Membership and authority](https://globalriskalliance.com/trust/membership-vs-authority/): supervisors and other public servants are not GRA members; they join open work only in their institutional role * [Industry councils](https://globalriskalliance.com/membership/industry-councils/), separate from the councils of GRF and of a National Nexus programme ## What the programme does not do No underwriting, lending, capital or privileged regulator access is promised. The programme does not supervise or regulate, does not seek privileged access to an authority, and issues no ratings, scores, bankability grades or certificates. An index or score that could be used to set a payment or a price is labelled a design value and withheld from that use. Nothing in the programme is an opinion on a named entity's creditworthiness. ## Status today The programme is in formation, at service level R0: information and enquiries. No study or exercise is recorded as completed ([Claims and programme status](https://globalriskalliance.com/trust/public-claims/)). ## Sources * Basel Committee on Banking Supervision (2022). *Principles for the effective management and supervision of climate-related financial risks*. Basel: BIS. * Bolton, P., Despres, M., Pereira da Silva, L. A., Samama, F. and Svartzman, R. (2020). *The green swan: central banking and financial stability in the age of climate change*. Basel: BIS and Banque de France. * Financial Stability Board (2021). *FSB Roadmap for Addressing Climate-Related Financial Risks*. Basel: FSB. * IFRS Foundation, ISSB (2023). *IFRS S2 Climate-related Disclosures*. London: IFRS Foundation. * Network for Greening the Financial System (2024). *NGFS Climate Scenarios for Central Banks and Supervisors, Phase V*. Paris: NGFS. * Taskforce on Nature-related Financial Disclosures (2023). *Recommendations of the TNFD*. * GRA (2026). *Finance and insurance readiness*; *Non-execution boundary*; *Universe finance-readiness programme*. globalriskalliance.com, read 2026-10-21. * The [Sources library](/organization/reference/sources.md) holds the full entries. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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