climate - and weather - related events that damage property and disrupt trade. transition risks result from the adjustment towards a lower - carbon economy. changes in policies, technologies and physical risks will prompt a reassessment of the value of a large range of assets as costs and opportunities become apparent. the longer meaningful adjustment is delayed, the more transition risks will rise. climate risks also have a number of distinctive elements, which, in combination, require a strategic approach. these include their : breadth, as climate risks affect multiple lines of business, sectors and geographies ; magnitude, as the full impacts of climate risks are large, potentially non - linear and irreversible ; foreseeable nature ; for example the oil and gas industry group convened by the world business council on sustainable development and the institute of international finance for banks. the other channel concerns liability risks. these stem from parties who have suffered loss from the effects of climate change seeking compensation from those they hold responsible. such claims could arise well into the future, as the science and evidence of climate change hardens, though some are already taking action against companies on the grounds of failure to disclose the risks posed to their business models by climate change. all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx dependency on short - term actions given that the size of future impacts will, at least in part, be determined by the actions taken today ; and uncertain time horizon which may stretch beyond traditional business planning cycles. the nature of these risks means that the biggest challenge in climate risk management is in assessing the resilience of firms ’ strategies to transition risks. part of the genius of the private sector - led tcfd is its recognition that disclosure needs to go beyond the static to the strategic. markets need information to assess which companies can seize the opportunities in a low carbon economy and which are strategically resilient to the physical and transition risks associated with climate change. the bank of england has also become increasingly active in such assessments, consistent with our financial stability and prudential mandates. as the supervisor of the world ’ s fourth largest insurance industry, we know that general insurers and reinsurers are on the front line of managing the physical risks from climate change. insurers have responded by developing their modelling and forecasting capabilities, improving exposure management, and adapting coverage and pricing. 8 in the process, insurers have learned that yesterday ’

deepak mohanty : economic and financial developments in odisha speech by mr deepak mohanty, executive director of the reserve bank of india, at the seminar on “ role of banks in odisha ’ s development ”, organized by the political and business daily, bhubaneswar, 20 august 2012. * * * the assistance of p. k. nayak, rekha misra, y. k. gupta, deepa raj and s. suraj in preparation of this paper is acknowledged. i thank shri bijoy ketan mishra for inviting me to address this distinguished gathering. i am happy that the political and business daily has chosen to highlight the role of banking in odisha ’ s development. in the development of the financial sector, banks have a pivotal role. finance leads growth and economic progress follows. as you know, the reserve bank has been actively engaged in the development of the financial sector. however, we have stepped up our efforts in the recent years to enhance the penetration of the formal financial sector and promote financial inclusion with a view to improving the well - being of our society. in my talk today, i propose to briefly outline the economic and financial structure of the state as well as highlight various financial inclusion initiatives taken by the reserve bank with a particular reference to odisha. in conclusion, i shall present some thoughts on policy challenges that lie ahead. odisha accounting for 4. 7 per cent of the total geographical area of the country and 3. 5 per cent of the national population has a unique place in the national history and culture. rather than going back on history, i will trace the economic development starting from the early 2000s mainly because this is a period in which the indian economy experienced a quantum jump in growth rate. and obviously, growth was happening in various states including odisha. economic structure during the 5 - year period 2003 – 08, all - india gdp growth rate averaged 8. 7 per cent per annum. in the subsequent 4 - year period 2009 – 12 though all - india gdp growth rate moderated to 7. 6 per cent per annum following the global financial crisis, it can still be considered high. it is noteworthy that coinciding with this high growth phase, the odisha economy witnessed acceleration in its gross state domestic product ( gsdp ). in fact, in the earlier period during 2003 – 08, the average gsdp growth in odisha at 11. 6 per cent per annum far exceeded the national average. subsequently, growth has moderated in odisha to an annual