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[ | |
{ | |
"question": "A bank’s risk officer is evaluating climate-related risk drivers that could create financial risk for the bank. The risk officer has classified rising global temperatures and wildfires as acute physical risks. The risk officer is correct with respect to:", | |
"options": [ | |
"wildfires only.", | |
"rising global temperatures only.", | |
"both wildfires and rising global temperatures.", | |
"neither wildfires nor rising global temperatures." | |
], | |
"correct_answer": "wildfires only.", | |
"explanation": "Wildfires are correctly classified as acute physical risks, which relate to extreme weather events. Rising global temperatures should be classified as chronic physical risks, which relate to climate shifts like rising global temperatures and rising sea levels. (LO 99.b)" | |
} | |
] |