CCP Climate Change Risk Assessment & Management 2 — Questions and Answers
Question 1: In a climate risk matrix, which axis typically represents the likelihood of a climate hazard occurring?
- Impact severity
- Frequency or probability (Correct answer)
- Adaptive capacity
- Exposure level
Correct answer: Frequency or probability
A standard risk matrix plots probability (likelihood) on one axis and impact severity on the other to produce a risk score.
Question 2: Which framework is most widely used for conducting climate-related financial risk disclosures in corporate settings?
- CDP Questionnaire
- TCFD (Task Force on Climate-related Financial Disclosures) (Correct answer)
- ISO 14064
- GRI Standards
Correct answer: TCFD (Task Force on Climate-related Financial Disclosures)
The TCFD framework provides guidance for companies to disclose physical and transition climate risks in financial filings.
Question 3: A coastal city assesses the risk of a 100-year storm surge event. Under climate change, this event is projected to occur every 20 years by 2080. This change is best described as a shift in the hazard's:
- Consequence
- Exposure
- Probability (Correct answer)
- Vulnerability
Correct answer: Probability
Increasing storm surge frequency means the probability of the hazard event increases, not its intensity or the community's exposure.
Question 4: What does 'residual risk' mean in climate risk management?
- Risk eliminated through adaptation measures
- Risk remaining after adaptation and mitigation controls are applied (Correct answer)
- Risk transferred to insurers
- Risk associated with historical climate baselines
Correct answer: Risk remaining after adaptation and mitigation controls are applied
Residual risk is the level of risk that persists after all risk treatment measures have been implemented.
Question 5: The IPCC AR6 introduced a framework distinguishing between 'fast-onset' and 'slow-onset' climate events. Which of the following is a slow-onset event?
- Tropical cyclone
- Flash flood
- Sea level rise (Correct answer)
- Heat wave
Correct answer: Sea level rise
Sea level rise is a slow-onset event that unfolds over decades, unlike fast-onset events such as cyclones or floods that occur rapidly.
Question 6: Which term describes the loss of lives, assets, and livelihoods that cannot be recovered or restored through financial compensation or technical measures?
- Acceptable risk
- Loss and damage (Correct answer)
- Stranded assets
- Residual risk
Correct answer: Loss and damage
Loss and damage refers to irreversible climate impacts—such as species extinction or loss of cultural heritage—that exceed the limits of adaptation.
Question 7: When conducting a supply chain climate risk assessment, a company finds that a key supplier is located in a high water-stress region. The primary risk category this represents is:
- Transition risk — regulatory
- Physical risk — chronic (Correct answer)
- Transition risk — market
- Physical risk — acute
Correct answer: Physical risk — chronic
Chronic water stress is a slow-developing physical risk linked to changing precipitation patterns and increasing temperatures over time.
CCP Climate Change Risk Assessment & Management 2
In a climate risk matrix, which axis typically represents the likelihood of a climate hazard occurring?