Câu 6: SCR: Sustainability and Climate Risk

The board of directors of a growing asset management firm recommends the firm expand its ERM framework to incorporate climate risks. In response, the risk team references the COSO ERM framework for applying ESG-related risks to develop and propose a strategy to implement climate risk into the various ERM components. How will the risk team modify the existing strategy component of the company’s ERM framework?

1. A. Gather and use scores and physical and transition risk exposure data to conduct various analyses to determine if excess risk would exist in an unfavorable climate scenario.
2. B. Evaluate the full business context on climate risk and understand how climate change affects the inputs, business activities, and outputs. — đáp án hiện tại
3. C. Factor in climate risk impacts when reassessing risks after considerable business changes.
4. D. Rank climate risks by likelihood of occurrence and severity to examine resulting outcomes and how the firm can mitigate these risks.