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Exam SCR topic 1 question 4 discussion

Actual exam question from GARP's SCR
Question #: 4
Topic #: 1
[All SCR Questions]

After recent summer and winter temperature extremes disrupt operations, a national oil company evaluates its 10-year business plan. The risk department reviews how corporate assets, both physical and human, are resilient to climate change. Early in the planning process, a risk team member emphasizes the importance of planning for both acute and chronic climate hazards.
How should the team member describe acute and chronic hazards in terms of the 10-year strategy?

  • A. When determining locations for future production facilities, modeling shifts in climate requires more data on local conditions than modeling changes in wildfire prevalence.
  • B. When assessing climate impacts on facility worker productivity, the frequency of heatwaves influences average temperature.
  • C. When assessing climate impacts on offshore drilling operations, models of hurricane damage agree more than models of sea level rise.
  • D. When considering climate impacts on onshore assets, flood projections are more accurate than mean precipitation change projections.
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Suggested Answer: C 🗳️

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ShawnLearning
1 year ago
Selected Answer: C
Acute hazards refer to short-term, sudden, and often extreme events, such as hurricanes, which can directly impact operations in the short term. Chronic hazards, on the other hand, are longer-term and gradual changes, such as sea level rise, which may pose a continuous threat to offshore drilling operations over time. Option C correctly highlights the difference in the reliability of models for these two types of hazards, emphasizing that hurricane damage models are more agreed upon or reliable than models for sea level rise. This highlights the importance of considering both acute and chronic hazards in the company's 10-year strategy for resilience to climate change.
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omi2di
1 year, 1 month ago
Selected Answer: C
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Kezanne
1 year, 4 months ago
acute hazards are event driven e.g floods while chronic hazards are longer term shifts in climate patterns e.g change in precipitation patterns. A 10 year plan would therefore look at the short term and long term impacts. answer is D
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