Part 3: How to Conduct Risk Assessment & Climate

Which of the following is the first step in conducting a climate-related risk assessment in manufacturing?

• A) Identify potential risks

• B) Analyze climate data

• C) Develop mitigation strategies

• D) Establish assessment objectives

When assessing climate-related risks, which factor is most important to evaluate?

• A) The aesthetic impact on the product

• B) The probability and severity of climate impacts on the production process

• C) The financial cost of operations only

• D) The size of the factory

Which of the following climate-related factors should be considered in a risk assessment?

• A) Temperature fluctuations

• B) Global stock market trends

• C) Social media campaigns

• D) Public relations strategies

What is the main purpose of conducting a climate risk assessment in manufacturing?

• A) To measure environmental impact

• B) To evaluate the effectiveness of marketing strategies

• C) To identify and mitigate risks that climate change could pose to production

• D) To increase workforce morale

Which method is commonly used to analyze risks during a climate risk assessment?

• A) Risk matrix

• B) SWOT analysis

• C) PESTLE analysis

• D) Five forces analysis

What does a “low probability, high impact” risk mean in climate risk assessments?

• A) The risk is unlikely to happen but would cause significant disruption if it did.

• B) The risk is likely to happen, but would have minimal impact.

• C) The risk is both likely to occur and would cause major disruptions.

• D) The risk is neither likely nor impactful.

Which of the following is an example of a climate risk that should be considered in a risk assessment?

• A) Sudden market trend changes

• B) Increased frequency of severe weather events

• C) Labor union negotiations

• D) Product design changes

What role do historical climate data play in a risk assessment?

• A) They help predict future risks based on past patterns

• B) They serve as a tool to assess marketing strategies

• C) They provide insights into labor force stability

• D) They offer predictions for stock prices

Which climate-related factor can significantly affect supply chain stability?

• A) Shortage of raw materials

• B) Extreme weather events such as floods and droughts

• C) Changes in consumer preferences

• D) Technological innovation

In a climate risk assessment, what is a vulnerability assessment used to evaluate?

• A) How well does the company communicate its climate policy

• B) The susceptibility of systems and processes to climate-related risks

• C) How well employees are trained on safety protocols

• D) The financial strength of the company