Which of the following is a key topic covered in the SCR exam?

The topic of climate change's impacts on financial risk is crucial in the GARP Sustainability and Climate Risk (SCR) curriculum. It emphasizes understanding how various climate-related factors can influence investment performance, credit risk, and overall financial stability. This includes evaluating the potential risks that climate change poses to different sectors, the importance of climate scenarios in risk assessment, and the integration of sustainability into financial decision-making.

As businesses and financial institutions face increasing pressure from regulatory bodies, stakeholders, and the market to account for climate risks, being well-versed in these issues can help professionals develop strategies that mitigate risks while also seizing opportunities related to sustainability. This focus on the interplay between climate change and financial risk is a key component of preparing for the SCR exam, as it reflects a broader understanding of the implications of sustainability in the financial landscape.