This short course introduces participants to the financial risks<\/a> and impacts associated with climate change<\/a>. Participants will explore a range of risk pathways that link climate and economic systems, including:<\/p>\n Topics will be explored through the use of case study examples, group-based analysis and problem solving. The learning is supported by readings, videos and live, interactive online sessions. Participants are encouraged to share their own knowledge and expertise in group-based discussion forums.<\/p>\n Upon completion of the course, participants will have a foundational understanding of the relationship between climate change and the economy. Participants will develop their ability to identify climate-related financial risks within their own organizations\u2014critical groundwork for effective planning and decision-making for mitigation<\/a> and adaptation<\/a>. Physical risks arise when climate-related hazards (extreme weather events, wildfire, sea-level rise, etc.) interact with vulnerable human and natural systems. When those risks materialize, they can have a range of financial impacts on an organization, including (for example): direct costs for restoration and repair, lost sales revenues, declining consumer demand, and increased financing and insurance costs.<\/p>\n In this module, we\u2019ll use case study examples to explore physical risks of climate change for private and public organizations in the face of a range of potential climate hazards. We\u2019ll explore both direct physical risks (i.e., those related to an organization\u2019s own vulnerabilities) and indirect risks (i.e., those that materialize elsewhere in an organization\u2019s value chain, such as with its suppliers, transportation infrastructure, consumers, etc.)<\/p>\n In Module 1, we\u2019ll be exploring the first of three main pathways by which climate impacts the economy. Physical risks arise when climate and weather events interact with physical assets and infrastructure in a manner that results in either direct costs (through property damage) or indirect costs (through disruptions in business operations)<\/p>\n When we think about direct physical risks, we often think only of those physical assets that we own\u2014our stores, our facilities, our inventory. However, every node in a business\u2019s value chain\u2014from raw materials extraction to customer sales and service\u2014can be exposed to direct risks from climate and weather hazards.<\/p>\n Regardless of whether those direct risks expose our suppliers, employees, customers, or the transportation infrastructure that links us all together, the impact may very well cascade onto business operations, costs and revenue stability. These are the indirect risks arising from the value chain\u2019s exposure to direct risk in the value.<\/p>\n Most small to medium sized enterprises and, indeed, many large organizations lack the resources and capacity to fully implement a catastrophe model of their own (though open-source Cat model applications are freely available to those with the courage!).<\/p>\n However, understanding the relationship between hazard, exposure, vulnerability and loss can still be useful when thinking about, identifying and ranking risks within any organization. You can start identifying your climate-related risks.<\/p>\n","protected":false},"excerpt":{"rendered":"\n
\nAs an introductory course, this course is suited to those with limited previous experience in climate-related finance or economics. However, a basic understanding of climate science is presumed.<\/p>\nModule Overview<\/h3>\n
Introduction<\/h3>\n
Modeling Risk<\/h3>\n