Climate Risks and Financial Resilience

Title

Climate Risks and Financial Resilience

Creator

Makhija, Priya; Kumar, Anil; Chacko, Elizabeth; Kumar, R. Thanga; Mishra, Manoj Kumar

Description

Climate threats are drastically altering the risk environment for businesses, which has a significant impact on their creditworthiness and valuation. The observable effectsdisturbed supply chains, damaged assets, and decreased consumer demanddirectly result in worse financial statements and a reduced ability to pay off debt. It is no longer possible for lenders and investors to overlook the systemic risk indicated by this decline in financial health. Therefore, the stability of the larger financial system depends on climate resilience, which is crucial for individual businesses as well. Financial stability and economic resilience are increasingly at risk due to the rising frequency and severity of catastrophic weather events and long-term ecological changes. The study uses the Scopus database, one of the most extensive bibliometric sources, to map worldwide research patterns and determine future directions in the field of climate risk and financial resilience in order to comprehend and manage these issues. The results show that supply chains are disrupted, asset prices are impacted, and operating expenses rise as a result of climate concerns. As a result, businesses and financial institutions are gradually implementing resilience planning, climate risk assessment frameworks, and sustainable investment strategies. The shift to low-carbon portfolios is a noteworthy trend that proactively integrates climate risk into financial planning to guard against possible losses and open up opportunities. This study enables a thorough knowledge of the components of climate hazard, which is crucial information for lawmakers, financial institutions, and business decision-makers. This clarity makes it easier to create forward-thinking, doable initiatives, such as strengthening public-private collaboration, funding resilient infrastructure, and incorporating climate issues into financial frameworks. Building long-term financial resilience against an unpredictable environmental backdrop and proactively addressing climate-induced shocks requires these integrated methods. The Author(s), under exclusive license to Springer Nature Switzerland AG 2026.

Source

Climate Change Management;Volume;Part F1345;pp.193-215

Date

01-01-2026

Publisher

Springer Science and Business Media Deutschland GmbH

Subject

Climate risk assessment; Climate risks; Financial resilience; Regulatory support; Resilience planning; Stakeholder perspectives; Sustainable finance; Sustainable investment

Coverage

Makhija P., Center for Management Studies, JAIN (Deemed-to-be University), Karnataka, Bengaluru, India; Kumar A., School of Management, Graphic Era Hill University, Uttarakhand, Haldwani, India; Chacko E., Christ University, Karnataka, Bengaluru, India; Kumar R.T., Center for Management Studies, JAIN (Deemed-to-be University), Karnataka, Bengaluru, India; Mishra M.K., Marwadi University, Gujarat, Rajkot, India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISSN: 16102002;

Format

online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.1007/978-3-032-03484-7_11

https://www.scopus.com/pages/publications/105027903584?origin=resultslist