Riskthinking.Ai Selected By Canadian Regulators To Power Flood Risk For National Financial Sector Climate Stress Test
(MENAFN- EIN Presswire)
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The results of this significant stress test, outlined in the newly released report,“Strengthening Climate Risk Financial Resilience”, standardized data from over 250 federally and provincially regulated financial institutions. The physical risk module for flooding, powered by RiskThinking's proprietary platform, covered financial exposures tied to eleven major urban regions and evaluated risks to approximately $904 billion in mortgage and real estate assets and $3 trillion in insured property values.
The full report is available here
The OSFI report explicitly highlights the critical data gap that necessitated the partnership:
“Given the absence of high-quality, forward-looking flood data in the public Domain, the SCSE partnered with a private vendor, RiskThinking, to directly provide flood depth maps to financial institutions.”
“We were honoured to partner with OSFI and the AMF on this pivotal exercise,” said Dr. Ron Dembo, Founder and CEO of RiskThinking.“The SCSE report validates a reality our firm was built to address: that managing systemic climate risk is impossible without a robust, forward-looking, and granular data foundation. This exercise has not only advanced the capabilities of the entire Canadian financial sector but has also set a new global standard for data-driven financial supervision.”
The SCSE report underscores the urgency for the tools and analytics that RiskThinking provides, noting several key conclusions:
●Critical Data and Capability Gaps: The report shows that reliable public data is limited, and many institutions lack experience with the geospatial analysis necessary for modern climate risk assessment.
●Heightened and Underestimated Exposures: With only 40% of Canadian homeowners purchasing optional flood insurance, the report highlights that banks face increased risk, as uninsured losses on collateral properties are not consistently monitored.
●A New Regulatory Expectation: After the exercise, OSFI and the AMF expect institutions to identify physical hazards in their portfolios, estimate potential financial impacts, and perform reliable stress testing using geospatial data and hazard models-key functions of the RiskThinking platform.
About RiskThinking
RiskThinking is a financial risk analytics firm that offers the data and analytics needed to assess the impact of climate change. Its patented technology and Climate Digital Twin-a comprehensive simulation platform mapping over five million physical assets-convert complex climate science into practical financial metrics. By acknowledging the radical uncertainty of climate change and concentrating on tail risks where true vulnerability exists, RiskThinking supplies the intelligence that financial institutions, corporations, and governments require to build a resilient future. Additional information is available at:
RiskThinking
The SCSE report validates a reality our firm was built to address: that managing systemic climate risk is impossible without a robust, forward-looking, and granular data foundation” - Dr. Ron Dembo, Founder and CEO of RiskThinkingTORONTO, ONTARIO, CANADA, September 11, 2025 /EINPresswire / -- RiskThinking, a global leader in climate financial risk data and analytics, was the sole vendor selected to provide essential flood risk data and analytics for the Standardized Climate Scenario Exercise 2024 (SCSE). Led by the Office of the Superintendent of Financial Institutions (OSFI) and the Autorité des Marchés Financiers (AMF), the exercise aimed to deepen the sector's understanding of climate risks, strengthen measurement capabilities, and deliver a standardized view across institutions.The results of this significant stress test, outlined in the newly released report,“Strengthening Climate Risk Financial Resilience”, standardized data from over 250 federally and provincially regulated financial institutions. The physical risk module for flooding, powered by RiskThinking's proprietary platform, covered financial exposures tied to eleven major urban regions and evaluated risks to approximately $904 billion in mortgage and real estate assets and $3 trillion in insured property values.
The full report is available here
The OSFI report explicitly highlights the critical data gap that necessitated the partnership:
“Given the absence of high-quality, forward-looking flood data in the public Domain, the SCSE partnered with a private vendor, RiskThinking, to directly provide flood depth maps to financial institutions.”
“We were honoured to partner with OSFI and the AMF on this pivotal exercise,” said Dr. Ron Dembo, Founder and CEO of RiskThinking.“The SCSE report validates a reality our firm was built to address: that managing systemic climate risk is impossible without a robust, forward-looking, and granular data foundation. This exercise has not only advanced the capabilities of the entire Canadian financial sector but has also set a new global standard for data-driven financial supervision.”
The SCSE report underscores the urgency for the tools and analytics that RiskThinking provides, noting several key conclusions:
●Critical Data and Capability Gaps: The report shows that reliable public data is limited, and many institutions lack experience with the geospatial analysis necessary for modern climate risk assessment.
●Heightened and Underestimated Exposures: With only 40% of Canadian homeowners purchasing optional flood insurance, the report highlights that banks face increased risk, as uninsured losses on collateral properties are not consistently monitored.
●A New Regulatory Expectation: After the exercise, OSFI and the AMF expect institutions to identify physical hazards in their portfolios, estimate potential financial impacts, and perform reliable stress testing using geospatial data and hazard models-key functions of the RiskThinking platform.
About RiskThinking
RiskThinking is a financial risk analytics firm that offers the data and analytics needed to assess the impact of climate change. Its patented technology and Climate Digital Twin-a comprehensive simulation platform mapping over five million physical assets-convert complex climate science into practical financial metrics. By acknowledging the radical uncertainty of climate change and concentrating on tail risks where true vulnerability exists, RiskThinking supplies the intelligence that financial institutions, corporations, and governments require to build a resilient future. Additional information is available at:
Rijah Mazhar
RiskThinking
+1 416-968-0996
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