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Exam SCR All Questions

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Exam SCR topic 1 question 30 discussion

Actual exam question from GARP's SCR
Question #: 30
Topic #: 1
[All SCR Questions]

A senior portfolio analyst at a global asset management firm performs a portfolio review to identify assets that may be affected by climate risk. Preliminary findings show the firm heavily invests in food and beverage companies with high climate risk exposure due to extreme temperatures and droughts. In a report to senior management, the analyst notes the firm can improve portfolio performance by examining physical risk, as the firm currently focuses primarily on transition risk.
Which approach to examining physical risk at the portfolio level should the analyst recommend?

  • A. Best- and worst-in class of an index
  • B. Temperature score methodology
  • C. “Warming potential” measurement on portfolios
  • D. Downscaled global climate modeling
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Suggested Answer: A 🗳️

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goodforme
Highly Voted 1 year, 8 months ago
Selected Answer: A
Temperature score methodology -> Company-Level Transition Risk One relatively simple way of examining physical risk at portfolio level is to look at the best-and worst-in class of an index
upvoted 6 times
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ochowny
Most Recent 1 year, 1 month ago
A is correct. P.134 "A simple approach to portfolio-level physical risk analysis".
upvoted 1 times
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SCRnow
1 year, 7 months ago
Why are so many answers wrong on this page... A is correct. Answer B is clearly wrong. (ITR - Net Zero - Transition risk)
upvoted 1 times
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B (20%)
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