Determining with precision the combined effect of these developments is difficult, but the overall risks appear to be more balanced. Climate Risk Having talked about two major near-term risk for the economic outlook, I would also remind you to take appropriate account of one risk that plays out over a longer horizon, namely climate risk.
I talked about this in detail earlier in the year. [3] Given your roles as risk managers, it is important that you have a useful framework to assess this risk to your business. Climate is a challenging risk to assess but an increasingly necessary one. Businesses need to take account of both the physical risks and the transition risks.