Climate risk assessment refers to the process of identifying, analyzing, and managing both physical and transition risks associated with climate change. These  risks can significantly affect a company’s assets, supply chains, and overall financial performance. Physical risks include extreme weather events like floods or heatwaves, while transition risks arise from policy changes, market shifts, and technological innovations. Conducting climate risk assessments enables businesses to anticipate disruptions, comply with regulations, and strengthen longterm resilience and sustainability.