Reconfiguring the risk of financial organizations as a consequence of the green transition and a potential source of ‘Green Swan events’
Reconfiguring the risk of financial organizations as a consequence of the green transition and a potential source of ‘Green Swan events’

Summary/Abstract: The green transition may have a significant impact on the risk reconfiguration at financial institu-tions, resulting in a redefinition of their existing role in the economy. Thus, the aim of the articleis to identify the determinants of risk in the activities of financial institutions, resulting from thegreen transition, and to diagnose to what extent the new conditions may exert a modifying effecton the existing constellation of traditional risks in banks. Cognitively interesting questions emergewhen the issue of ESG risk and its transmission channels is juxtaposed with the concept of theTalebian ‘Black Swan’. The question “To what extent is there a case to treat ESG risks as a potentialsource of so-called black swan events?” captures the point of the research problem. The results ofthe research carried out indicate that financial institutions are taking into account specific areas ofrisk as a result of the changing environment in which they operate. The constellation of traditionalrisks has changed. In addition, the ‘Green Swan’ metaphor may prove useful in explaining themechanisms and repercussions associated with the green transition.

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