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