Welcome to ExamTopics
ExamTopics Logo
- Expert Verified, Online, Free.
Mail Us[email protected]
Menu
Garp Discussions
exam questions

Exam SCR All Questions

View all questions & answers for the SCR exam
Go to Exam

Exam SCR topic 1 question 80 discussion

Actual exam question from GARP's SCR
Question #: 80
Topic #: 1
[All SCR Questions]

An EU juice producer heavily relies on Brazil’s supply of oranges to produce its top-selling orange juice brand. The producer anticipated steady growth, but production decreased due to the rise in mean temperature in Brazil.
The climate-related risk of mean temperature rise in Brazil increases what indirect effect?

  • A. The chronic market risk of a temperature rise disrupts the supply chain for oranges, reversing the significant asset write-offs for the juice producer.
  • B. The chronic physical risk of a temperature rise decreases the production of oranges and subsequently negatively impacts the profits of the juice producer by reducing the production of the juice brand.
  • C. The acute reputational transition risk of a temperature rise decreases production due to health-related issues with workers in Brazil, leading to reduced demand for the juice brand.
  • D. The acute physical risk of a temperature rise disrupts the supply chain for oranges, creating financial losses for the juice producer due to its inability to honor its supply contracts.
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️
by Karnitschnig at April 15, 2023, 7:54 a.m.

Comments

Chosen Answer:
This is a voting comment (?) , you can switch to a simple comment.
Switch to a voting comment New
Submit Cancel
kavvv
1 year, 1 month ago
Seems like all the answers are wrong shomehow. The q's asked for an indirect impact. B is describing a direct impact. Increased temp > reduced production of oranges > lower profits. C would be more appropriate if it didn't have 'acute' in it. Increased temps > worsened working conditions impacting worker's health > indirectly results in reputational risk to the company due to consumer's awareness
upvoted 1 times
...
Riskr
1 year, 7 months ago
Selected Answer: B
B is the best
upvoted 1 times
...
Riskr
1 year, 7 months ago
Selected Answer: B
B is the best. Temperature ise is chronic not acute.
upvoted 1 times
...
Aziz09081
1 year, 7 months ago
B is best ans
upvoted 2 times
...
Karnitschnig
1 year, 7 months ago
Selected Answer: B
Temperature rise is chronic, not acute, so D is out. B is best answer
upvoted 2 times
...

Get IT Certification

Unlock free, top-quality video courses on ExamTopics with a simple registration. Elevate your learning journey with our expertly curated content. Register now to access a diverse range of educational resources designed for your success. Start learning today with ExamTopics!

Start Learning for free
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel