The United Nations has endorsed the “1-in-100” disaster resilience stress test championed by Willis Group.

The global broker says the move boosts efforts to help organisations improve their risk management using proven metrics developed by the insurance industry.

“We are sharing the lessons we have learned during this process with the financial sector and the wider economy,” CEO Dominic Casserley told the recent UN Climate Summit.

The 1-in-100 stress test aims to promote resilience and protection from climate risk by integrating natural disaster into the financial system. It assesses the maximum monetary loss a city, company or region can expect once in 100 years.

A UN joint action statement says the goal is to have the test implemented into the wider financial and accounting system by 2020.

A resilience modelling and mapping forum will be set up to co-ordinate research programs for assessing disaster risk exposure.

“Applying a one-in-100-year solvency ‘stress test’ to current assets and current climate conditions can help organisations to truly understand their risk and manage it in an economically rational way,” Mr Casserley said.

“Working closely with the UN Secretary-General’s office and regulatory authorities, we aim to apply these tried and tested principles within the global financial system by 2020.”