A climate risk assessment can assist organisations to identify their climate change-related risks or to test the relevance of their existing risk management strategies under climate change and identify the need to take further action. Climate risk assessments are completed as a structured process following a series of steps. They help analyse the consequences and likelihood of risk through consideration of three interacting components: hazard, exposure and vulnerability.
You will make more rapid progress exploring climate risk if you adopt a formal risk assessment method in the process and before you start collecting climate data. The risk assessment process will guide you to the types of climate data you need to assess, short list the hazards relevant to your system and identify the values and objectives. It can also give you confidence to make informed and defendable decisions, even if some information is uncertain.