Risk Management for Climate Change

This paper commences with a brief explanation of climate change. This is followed by a discussion of risks that climate change poses to businesses. The paper then examines risk management for climate change in business organizations. This discussion includes inside-out and outside- in strategic framework for managing risks associated with climate change. We argue that climate change risk is a newer form of business risk and involves managing on the edge - especially because of regulatory and market uncertainty. Managers need to develop a strategic tool kit to deal with climate change risks. We conclude with a discussion of the international policies for dealing with climate change risks, with a particular focus on the Australian Government’s framework.