Finally, the long time horizon associated with climate change, the lack of historical data, the potential for sudden shifts in asset valuations, and the paucity of information on the climate-sensitivity of exposures complicate the translation of climaterelated risks into measures of credit, market, liquidity, reputational, and operational risks.
13 Improved data, disclosures, and modelling techniques will be crucial to reducing uncertainty around the potential magnitude of risks related to climate change. Financial institutions are collecting data and experimenting with scenario analysis and other  USGCRP, “Climate Science Special Report: Fourth National Climate Report,” U.S. Global Change Research Program. 12 IPCC, Impacts of 1.5⁰C Global Warming on Natural and Human Systems, 2018, pp.