Physical Risk Intelligence Across APAC: From Asset to Supply Chain

Physical risk is already affecting investment returns. But is your analysis capturing it? In one MSCI study, companies with assets in hurricane paths recorded negative excess returns of more than 20 basis points over 30 business days, after accounting for standard risk factors.1 It is one example of how physical climate exposure can have measurable financial impacts, raising a broader question about the risks investors may be overlooking.  

For companies and investors in Asia Pacific, physical risks often overlap. Manufacturing clusters, water-stressed supply chains and exposure to both acute and chronic hazards can compound financial risks. Assessing these exposures requires looking beyond individual assets and company headquarters to understand where operations and supply chains face risk.

Join us on Wednesday, November 18, to explore how physical risk analysis can provide a clearer picture of these exposures. Through an in-depth case study from Asia Pacific, we will examine how risks can be identified and assessed across company operations and supply chains.

What you'll learn:

• Quantify physical risk in financial terms. See how physics-based hazard modeling and asset-level data can translate exposure into expected financial loss, including average annual loss (AAL), and aggregate results from individual locations to the issuer level.

• Evaluate the economics of adaptation. Explore how modeled losses can be used to assess the potential costs and benefits of resilience measures and identify where adaptation could reduce expected losses.

• Extend your physical risk view across the supply chain. Explore how physical hazards affecting upstream suppliers can be traced through Tier 1 and Tier 2 relationships to identify where risks are concentrated and understand how it may flow through to an issuer’s cost base.