Climate change presents both physical and societal risks. Physical risks can be acute such as short-duration extreme storms and chronic such as long-term sea level rise. Societal risks are associated with the transition to a low-carbon economy and include changes in policy and laws, technology, market demand, and reputation. The pervasiveness of climate change risks across all sectors of the economy and all geographies means that stakeholders cannot avoid risk exposure by migrating to other regions or diversifying a portfolio of assets. Today, society seeks to understand climate change risks so their impacts can be lessened through mitigation, increased resilience, and adaptation. This paper surveys best practices in climate change risk assessment. Publicly-available tools that can aid in the evaluation of potential climate change risks are presented. A step-by-step guide for conducting evaluations of both physical and transition risks is discussed and a hypothetical CCRA is illustrated.
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