The Central Bank of Azerbaijan (CBA), in cooperation with the Azerbaijan Banks Association (ABA) and with the support of Germany's Sparkassenstiftung for International Cooperation, held a presentation of the ESI Risk Radar tool for representatives of the banking sector, the CBA told Report.
The event focused on the key findings, methodological approaches and application opportunities of the ESI Risk Radar, which was developed to enable a more systematic assessment of environmental, social and governance (ESI) risks in the financial sector.
Participants were also briefed on the methodological documents and tools developed as part of the project, as well as the findings of a needs assessment conducted across the banking sector.
The participants exchanged views on the practical application and further improvement of the tool, as well as its integration into banks' risk management processes.
The ESI Risk Radar is designed to support the assessment of ESI risks at both sector and customer levels and help banks identify and manage relevant risks within their loan portfolios.
The CBA said initiatives aimed at strengthening the effective management of ESI risks in the financial sector and promoting sustainable finance will continue.