ILB 19th Financial Risks International Forum

 

The Institut Louis Bachelier, in cooperation with the Fondation du Risque and the Europlace Institute of Finance, is organising the 19th Financial Risks International Forum, which will take place in Paris on 30–31 March 2026.

The forum brings together academics, financial industry professionals, and policymakers to discuss emerging challenges in financial risk research.

The 2026 edition will focus on the theme “Hidden Financial Risks.” The conference will explore risks that are opaque, nonlinear, or embedded in new financial infrastructures and business models, and will examine new approaches to detecting, modelling, and mitigating vulnerabilities that remain difficult to capture with traditional analytical tools.

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On March 30, at 3:00pm, Fangyuan Zhang, Senior Research Engineer at the EDHEC Climate Institute, will present the results of the paper “Quantifying Climate Risk Premia”, co-authored with Lionel Melin, Associate Researcher at EDHEC Climate Institute.

The paper develops a quantitative framework combining climate dynamics and a long-run risk asset pricing model to assess how climate change may affect financial markets and risk premia.

Key contributions include:

• Extending the well-known long-run risk asset pricing model by incorporating a climate channel.

• Using recent estimates of chronic physical climate risk to translate climate damages into implications for interest rates and the equity risk premium.

• Showing that under a 3°C warming scenario, the equity risk premium may increase by up to 20%, suggesting a potential revaluation of financial assets.