Question #13Topic 1

A climate analyst at a research institution analyzes climate risk for various

companies. The analyst examines transmission channels of climate risk as part of the
risk identification process.
Which of the following examples can the analyst use to describe an operational risk
transmission channel?

 A. A damaging hurricane leads to a run on credit as affected communities need cash to

fund recovery efforts.
 B. Following a high carbon tax, a company strands high-emissions assets.
 C. High commodity prices boost revenues for a mining company that extracts lithium.
 D. Flooding damages an information technology company data center.

Hide Solution Discussion 5

Correct Answer: D 🗳️

Question #14Topic 1
In preparation for an upcoming global climate conference, organizers develop climate
science training materials for business executives.
How should the training material compare anthropogenic and natural climate
changes?

 A. Human-caused warming is occurring much faster than natural warming after the last
ice age. Most Voted
 B. Human-induced warming currently exhibits a nonlinear relationship with global CO2
levels, whereas natural warming shows a linear relationship.
 C. Human activities slowed water vapor feedback, whereas natural climate changes do
not alter water vapor balance.
 D. Human activities caused temperature changes greater than any previous natural
temperature changes.

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Correct Answer: D 🗳️