Free SCR Exam Braindumps (page: 8)

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A West African energy company plans to expand beyond regional operations to markets throughout the continent. Executive leadership determines integrating SDGs into operations can help the company appeal to new consumers and political decision makers. The company CSO develops a strategy to promote the SDGs to external stakeholders.
What should the strategy include?

  1. Calculation of the economic benefits of an SDG before applying a strategy.
  2. Disclosure of the SDG alignment to investors to allow comparability among peers.
  3. Quantification of each SDG target to measure progress.
  4. Prioritization of SDGs that incorporate nature-based solutions.

Answer(s): C



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?

  1. Best- and worst-in class of an index
  2. Temperature score methodology
  3. “Warming potential” measurement on portfolios
  4. Downscaled global climate modeling

Answer(s): B



Senior management at a global manufacturer of commercial flooring explores strategies to reduce capital costs and improve company valuation, resulting in a comprehensive sustainability strategy. Management determines all future flooring products will be carbon neutral across their full product life cycle. The risk team is tasked with updating the company ERM framework in accordance with COSO guidelines to include ESG and climate-related risks. The team reviews and updates each of the ERM components.
What action should the team recommend the company take as part of the communication component of the ERM framework?

  1. Determine which transmission channel of climate risk drivers is most relevant for the company.
  2. Assess the relative importance of various climate risk and sustainability risk drivers.
  3. Build climate risk into existing legal and compliance processes.
  4. Establish processes to convey climate and sustainability risk exposure.

Answer(s): D



The board of directors of a growing asset management firm recommends the firm expand its ERM framework to incorporate climate risks. In response, the risk team references the COSO ERM framework for applying ESG-related risks to develop and propose a strategy to implement climate risk into the various ERM components.
How will the risk team modify the existing strategy component of the company’s ERM framework?

  1. Gather and use scores and physical and transition risk exposure data to conduct various analyses to determine if excess risk would exist in an unfavorable climate scenario.
  2. Evaluate the full business context on climate risk and understand how climate change affects the inputs, business activities, and outputs.
  3. Factor in climate risk impacts when reassessing risks after considerable business changes.
  4. Rank climate risks by likelihood of occurrence and severity to examine resulting outcomes and how the firm can mitigate these risks.

Answer(s): D



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Ashish commented on August 26, 2024
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UNITED STATES
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