What Is Climate Risk?
Climate risk is the potential for physical, regulatory, economic, or reputational damage caused by the effects of climate change, such as extreme weather events, sea level rise, and changes in precipitation patterns. Climate risk is a growing area of concern for businesses, governments, and individuals alike, and the potential for significant impacts on health, the economy, and the environment is increasing.
How Climate Risk Is Measured
Climate risk can be measured in a variety of ways, including by its potential financial impacts, its likelihood of occurring, and its potential for causing physical damage or disruption. Companies, governments, and individuals can use these measurements to assess their vulnerability to climate-related risks and plan accordingly.
Climate Risk and Financial Impacts
Climate risk can have a significant financial impact, especially for businesses and governments. Companies may have to invest in new technologies or processes to reduce their carbon emissions or to adapt to changes in their environment, while governments may have to provide financial aid to those affected by extreme weather events, sea level rise, or other climate-related risks.
Addressing Climate Risk
The best way to address climate risk is to take steps to reduce greenhouse gas emissions, such as transitioning to renewable energy sources and enhancing energy efficiency. Governments, businesses, and individuals can also take steps to prepare for and mitigate the impacts of climate change, such as developing resilient infrastructure and adapting to changes in the environment. Investing in climate risk mitigation and adaptation measures can help to reduce the potential financial impacts of climate change.
Conclusion
Climate risk is a growing area of concern for businesses, governments, and individuals alike, and the potential for significant impacts on health, the economy, and the environment is increasing. To address climate risk, it is important to take steps to reduce greenhouse gas emissions, develop resilient infrastructure, and invest in climate risk mitigation and adaptation measures. Doing so can help to reduce the potential financial impacts of climate change.

Kyle Whyte is a notable scholar and professor at the University of Michigan, holding positions such as the George Willis Pack Professor in the School for Environment and Sustainability and Professor of Philosophy. Specializing in environmental justice, his work critically examines climate policy and Indigenous peoples’ ethics, emphasizing the nexus between cooperative scientific endeavors and Indigenous justice. As an enrolled Citizen Potawatomi Nation member, he brings a vital perspective to his roles as a U.S. Science Envoy and member of the White House Environmental Justice Advisory Council. His influential research is supported by various prestigious organizations including the National Science Foundation, and disseminated through publications in high-impact journals. Kyle actively contributes to global Indigenous research methodologies and education, with affiliations to numerous institutes and societies dedicated to traditional knowledge and sustainability. Recognized for his academic and community engagement, Kyle has earned multiple awards and served in various visiting professorships. His efforts extend to leadership positions on boards and committees focused on environmental justice nationwide.