Assessing nature-related risks in the Hungarian financial system
Charting the impact of nature's financial echo
This paper presents a technical assessment of nature-related risks within the Hungarian
economy and financial system. The study draws upon the OECD Supervisory Framework
to (i) prioritise various nature-related risks by conducting an impact and dependency
assessment, identifying key economic sectors, and pinpointing the critical natural
capital assets that are most crucial to the financial system; (ii) assess the direct
and indirect economic impact of three exploratory scenarios on possible acute nature-related
shocks using input-output analysis; (iii) explore the different financial risk channels
through which economic risks stemming from nature-related losses may be transmitted
within the Hungarian financial system; and (iv) provide supervisory recommendations
based on the results.
Published on June 30, 2024
In series:OECD Environment Working Papersview more titles