GARP SCR Exam Preparation

Below is the list of various questions answered in this post 1. What is an additional carbon offset project? 2. How can leakage happen for Carbon offset project?

Below is the list of various questions answered in this post Question#1: Is Value at Risk used for Credit risk only? Question #2: Which is better Carbon Intensity or Weighted average carbon intensity? Question#3: What are examples of different kind of Risk responses? Question#4: What are examples of market dislocations that are responsible for Market risk? Question#5 Explain the case study on CVaR from Chapter 6 of the book for GARP SCR Certification exam?

  Hello, Please see below are the examples of different Risk Responses. I have also added few sample examples at the bottom of this post 1. Accept (Risk Acceptance) 1. IT System Downtime: An IT company decides to accept the risk of minor system downtime during off-peak hours because the cost of achieving 100% uptime would be prohibitively expensive. 2. Currency Fluctuation: A multinational corporation accepts the risk of exchange rate fluctuations for its overseas sales, deeming the potential losses manageable. 3. Employee Turnover: A small business accepts the risk of employee turnover as the cost of implementing extensive retention programs is not justified by the size and financial position of the company. 4. Product Liability: A manufacturer accepts the minimal risk of liability claims due to the established quality of its products and low incident history. 5. Economic Recession: A retail company accepts the potential risk of reduced sales during an economic downturn, deciding that

  Question based on Chapter 05 In this post, below questions have been answered: Q1. How are green bonds regulated as the involvement of external verification by the bond issuer is not compulsory? How are the bond holders assured if the green bond issuer is correctly managing the proceeds as was promised?  Q2. For Sustainable finance, Why Economic and Governance sub-types are mentioned in addition to E,S and G sub-types? Question #1:   Questions asked by  LinkedIn community   member Chris Moutzouris How are green bonds regulated as the involvement of external verification by the bond issuer is not compulsory? How are the bond holders assured if the green bond issuer is correctly managing the proceeds as was promised?  ANSWER:  Here is the explanation: While external review for green bonds is optional and internal auditing is managed by the issuing company, several regulatory mechanisms and market practices help ensure that companies comply with their commitments and maintain transparen

  Question based on Chapter 01 Question #1:   Questions asked by  LinkedIn community  member Ashvini Mei Xi What is BECCS? Answer: Let me explain. For the sake of simplifying, let us break the word into 3 parts: BECCS = B (bio) + E (energy) + CCS (carbon capture & storage) Let me consider each of the sub-part and explain them: 1) "B" (bio) means natural (Biological system) sinks like Trees which absorb carbon dioxide from the atmosphere and store the same in them/sequestrate. 2) These biological systems (trees) can be later burnt to derive "E" (energy) in form of heat. However, when they are burnt they release carbon dioxide that was earlier stored in them. In other words, carbon dioxide is released from the trees when they are burnt. 3) In order to avoid the released carbon dioxide (emissions) going back to the atmosphere, we capture them using "CCS". This way, we remove carbon dioxide from the atmosphere, stored them in trees (biological systems) ,

Question based on Chapter 04 Question #1:   Questions asked by  LinkedIn community  member Abhijeet Bhosale Multilateral development banks (MDBs),  i ncluding global ones such as the Internat i onal Bank for Reconstruction and Deve l opment (IBRD, commonly known as the World Bank), and regional ones, such as the Afr i can Deve l opment Bank (AfDB), the Asian Development Bank (ADB), the European Investment Bank (EIB), and the Inter-American Development Bank (IADB), are tasked with supporting public-sector investment in  physical and human capita l  projects conducive to socioeconomic deve l opment .? Examples will be helpful. Answer:    Multilateral Development Banks (MDBs) support a variety of physical and human capital projects aimed at fostering socioeconomic development. Here are some examples of such projects: Physical Capital Projects 1. Infrastructure Development Asian Infrastructure Investment Bank (AIIB) - Bangalore Metro Rail Project: AIIB provided funding to expand the metro

Question based on Chapter 03 Question #1:   Questions asked by  LinkedIn community  member Abhijeet Bhosale According  to  the TCFD 2022  Status  Report, over 3,800 organizations have become supporters of the TCFD Recommendations, including over  1,500  financial institutions responsible for  assets  of $217 trillion. Based on the fiscal year 2021 reporting of over  1,400  companies, 80% of companies disclosed in line with  at  least one  of the 11 recommended disclosures; however, only  4%  disclosed in line with all 11 recommended disclosures and only around  40%  disclosed in line with at least five. Europe remains the leading region for disclosure, and reporting on climate-related risks and opportunities is  higher than any other recommended disclosure.  Despite this, the resilience of companies' strategies under different climate-related scenarios continues  to  have the lowest level of disclosure, while governance remains the least disclosed recommendation. -  Could not under

Green taxonomy and Greenwashing Green taxonomies might be more suited for public policy and fiscal decisions but face challenges in tackling green-washing in financial markets. This is explained below. 1. Public Policy and Fiscal Decisions: Green taxonomies provide a structured framework to classify economic activities based on their environmental impact. This framework can be very useful for public policy and fiscal decisions for several reasons: Policy Alignment : Governments can use green taxonomies to align public spending, subsidies, and incentives with environmental goals, ensuring that public funds support genuinely sustainable activities Standardization: Taxonomies offer a standardized approach for identifying and promoting green projects, making it easier to implement and monitor policy measures. Regulatory Guidance : They can guide regulatory frameworks, ensuring that environmental regulations are consistent and aligned with broader sustainability objectiv

Quiz#10 : Test Your Understanding with a FREE Quiz for GARP SCR Certification - Chapter 10 Thank God,its Friday.  A brand new exciting quiz for you! This FREE quiz is based on  Chapter 9 :Climate and Nature Risk Assessment from GARP SCR course. You will find some interesting questions to tackle. Please feel free to share your feedback. Ready to take the exam? So, roll up your sleeves and here it comes. Click on this  link to take the short exam   (This link will take you to a Google form test) #GARP #SCR #FREE #Quiz #Climate #Nature #Assessment #Risk For more free resources,  please click on the Cheatsheet      Why support?