I think that recent years and months have taught us an important lesson: attitudes toward risk not only vary over time – for example, following long-term trends – but they do so by waves and oscillations around trends. Phases of excessive risk taking can be followed by sudden reversals driven by abrupt global confidence shocks such as the one experienced in mid-September 2008.
At the NGFS we have been working hard over the past four years to integrate climate-related and environmental risks into the work of central banks and supervisors. We published a Guide recommending that supervisors clarify their expectations that banks and insurers should revisit their very DNA to address climate-related and environmental risks.