Question #7Topic 1

A large insurance company in South America expands use of climate scenario

analysis. The company used RCPs in previous scenario analyses but now hires an
actuary with climate expertise to incorporate SSPs in this process.
How can the actuary advise the insurance company use SSPs going forward?

 A. Demonstrate how SSP and RCP trajectories typically show contradictory emissions
trend trajectories.
 B. Combine SSPs with different RCPs to assess climate policy options. Most Voted
 C. Eventually replace SSPs with RCPs by integrating underlying data assumptions.
 D. Use SSPs to provide alternative emissions pathways to RCPs.

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Correct Answer: D 🗳️

Question #8Topic 1
A climate risk consultant advises an Eastern European central bank. In response to
regulatory changes, the bank will incorporate climate-related risks into bank policies.
The consultant writes a summary on how central banks incorporated climate-related
risks into policies. The summary highlights the Bank of England (BoE) example to
demonstrate how the BoE integrated climate-related risks within the bank supervisory
scope.
Which of the following BoE practices will the consultant recommend?

 A. Integrate climate-related risks into bank monetary policy before attempting to

integrate climate into other areas of bank operations.
 B. Obligate firms to allocate responsibility for climate-related risks using a bottom-up
approach where the risk team assesses climate risks while the board of directors
approves or denies.
 C. Require banks and insurers include all material exposures relating to financial risks
from climate change under capital adequacy and solvency assessments.
 D. Adopt a policy that requires firms to submit climate risk disclosures that precisely
follow NGFS guidelines.

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Correct Answer: C 🗳️

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