Physical risks
Definition
Physical risks refer to the potential impact on a company of event-driven (acute) or longer-term shifts (chronic) in climate patterns. This includes risks associated with extreme weather events such as hurricanes, wildfires, extreme rainfall, droughts, and sea-level changes, which can have destructive effects on industries such as agriculture and infrastructure. Additionally, physical risks encompass threats to the functioning of firm assets, such as real estate and industrial plants, due to flooding, storms, and excessive temperatures. The Intergovernmental Panel on Climate Change (IPCC) expects these physical risks to increase over time as the severity of climate change impacts becomes more pronounced.
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Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
