This white paper explores advanced stress testing and climate risk analysis to help future‑proof credit portfolios across the APAC region. Using a case study based on Moody’s Analytics PortfolioStudio, it analyzes a sample portfolio of corporate loans across markets including Australia, New Zealand, Singapore, and Malaysia. The paper examines traditional stress testing alongside climate‑specific scenarios to assess how portfolios may perform under economic shocks and environmental risks. By modeling portfolio growth and sector allocation, the study identifies vulnerabilities and opportunities, enabling portfolio managers to strengthen resilience, better manage climate‑related credit risks, and support more informed, forward‑looking investment decisions.

Join for free to read