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What is Climate Risk Management?

Climate risk management involves identifying, assessing, and mitigating the risks associated with climate change. This includes physical risks like extreme weather events and transition risks related to regulatory changes and market shifts. Organizations develop strategies to reduce their vulnerability and enhance resilience to climate impacts. Effective climate risk management protects assets, ensures business continuity, and supports long-term sustainability. It involves cross-functional collaboration and integration into overall risk management frameworks.

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