Free GARP SCR Exam Questions

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? 

An environmental agency for a southeast Asian nation increases funding to study historic climate change and its impacts. The agency funds a proposal for a scientific subject matter expert to conduct a large-scale study of the nation’s tree rings. What information will this study most likely reveal?

At an international finance bank, a lack of staff clarity regarding sustainability, climate, and ESG definitions led to overlapping and inefficient initiatives. To minimize inefficiencies, the sustainability department develops new terminology for use across the bank. What should the department include in this new terminology?

A sustainability analyst at a global energy company assesses trends in the electric power sector for the next 10 years. To inform strategy, the analyst focuses on the interaction among climate risks, advancements in renewable energy, and stranded asset risk for fossil fuels. According to the analyst, what trend will likely emerge during the next decade?

The risk team at an agricultural company in Easter Europe evaluates crop yield production performance. The evaluation reveals high temperature and water shortages will likely harm crop production, and current company insurance will not mitigate this exposure. The team recommends increasing coverage by purchasing an additional insurance policy that includes area yield protection. According to the COSO ERM framework, which risk response strategy did the team recommend?