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Vol. 5 No. 4 (2026)
"Labor Economics and Human Capital" Scientific electronic journal

Articles

THE MECHANISM OF ESG RISK ASSESSMENT IN THE RISK MANAGEMENT SYSTEM OF A COMMERCIAL BANK

DOI 10.67668/LEHC/vol5iss4/359 Google Scholar Search in Scholar Pages 28-42

Published 2026-10-14

Authors
Tuychieva Madina Gafarovna
Affiliation
Department of Finance and Financial Technologies, USAT Tashkent State Transport University Department of Corporate Governance
Mehnat iqtisodiyoti va inson kapitali · 4 · 2026
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Abstract

The article examines the problem of integrating environmental, social, and governance (ESG) risks into the risk management system of a commercial bank. Based on the analysis of international regulatory standards (Basel Committee on Banking Supervision, European Banking Authority, European Central Bank, NGFS), the results of supervisory climate stress testing, and data on the development of the green finance market in Uzbekistan, a five-stage mechanism for ESG risk assessment is substantiated: identification, measurement, transmission into traditional types of banking risks, management, and monitoring. The author proposes a model for the integrated ESG scoring of a borrower with an industry-specific adjustment, alongside a methodology for adjusting the probability of default, illustrated by a conditional calculation. It is concluded that ESG risks should be viewed not as a separate category, but as a driving factor that amplifies credit, market, operational, and liquidity risks.

Keywords

ESG risks, risk management, commercial bank, climate risk, ESG scoring, stress testing, green finance, probability of default

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