Climate risk

Climate risk is the potential for negative consequences for human or ecological systems from the impacts of climate change. It refers to risk assessments based on formal analysis of the consequences, likelihoods and responses to these impacts and how societal constraints shape adaptation options. However, the science also recognises different values and preferences around risk, and the importance of risk perception.^: 149

Common approaches to risk assessment and risk management strategies based on natural hazards have been applied to climate change impacts although there are distinct differences. Based on a climate system that is no longer staying within a stationary range of extremes, climate change impacts are anticipated to increase for the coming decades. Ongoing changes in the climate system complicates assessing risks. Applying current knowledge to understand climate risk is further complicated due to substantial differences in regional climate projections. There is also an expanding numbers of climate model results, and the need to select a useful set of future climate change scenarios in the assessments.

The Intergovernmental Panel on Climate Change (IPCC) assessment framework is based on the understanding that climate risk emerges from the interaction of three risk factors: hazards, vulnerability and exposure. The IPCC summarises publishes research on climate risk evaluations. International and research communities have been working on various approaches to climate risk management including climate risk insurance.