Recent Developments of Practices on Management of Storm and Flood Risks and Support for Clients
in the Financial Sector

Since the publication of the “Supervisory Guidance on Climate-related Risk Management and Client Engagement” in July 2022, the Financial Services Agency (FSA) keeps on understanding the actual state of financial institutions’ responses to climate change.

Today, the FSA published a report which illustrates a range of practices among financial institutions in managing financial risks arising from storm and flood damage (storm and flood risks) and providing support for their clients. The FSA surveyed recent developments on the management of storm and flood risks among major banks, regional banks and insurers, as well as support for their clients.

The financial institutions covered in the FY 2025 survey widely recognize climate-related financial risks, including storm and flood risks, as key risks. Their risk management has advanced through risk analyses based on more refined data and more sophisticated analytical methods, as well as through enhanced investment and lending decision. Banks and insurers provide support for their clients, including financial products for disaster-related repayment relief and products for adaptation investments, as well as services for storm and flood risk assessment and other management services. Drawing on the lessons learnt from past disasters, financial institutions have reviewed and enhanced their own business continuity plans (BCPs) and adaptation measures.

The FSA will keep monitoring developments in financial institutions on management of climate-related financial risks including storm and flood risks and client support, taking into account the size, characteristics and risk profile of individual financial institutions.

• Recent Developments of Practices on Management of Storm and Flood Risks and Support for Clients in the Financial Sector: Overview
• Recent Developments of Practices on Management of Storm and Flood Risks and Support for Clients in the Financial Sector: Main text (Japanese)

　The English version of the main text will be published shortly. This is only a provisional translation. The original version is available in Japanese. Readers should consult the original version if in any doubt. 

Contact

Office for Climate-related Financial Risk Monitoring Hub, Risk Analysis Division, Strategy Development and Management Bureau, Financial Services Agency

Tel +81-(0)3-3506-6000 (ext. 3475)