Correctly identifying and quantifying the exposure of their assets to climate risks is also essential for managing them more accurately and effectively. *** The pandemic, with its terrible toll, is not yet behind us, and much uncertainty remains about the course it will take. Considerable efforts are still required to tackle the health emergency and support the hardest hit businesses, workers and households.
Moreover, there is always a risk of reacting inappropriately to unusual developments, when these are instead in line with fundamentals. 14  See, for example, Christiano, Motto and Rostagno (2003 and 2006), Cúrdia and Woodford (2008), De Fiore and Tristani (2007 and 2008), De Fiore, Tristani and Teles (2009), Faia and Monacelli (2007), Faia (2008), and Gertler and Karadi (2009).