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    • Question

      Direct financial losses caused by extreme weather events

      like floods, droughts, and severe cyclones are classified as:
      A Transition Risks Correct Answer Incorrect Answer
      B Physical Risks Correct Answer Incorrect Answer
      C Statutory Risks Correct Answer Incorrect Answer
      D Operational Risks Correct Answer Incorrect Answer
      E Governance Risks Correct Answer Incorrect Answer

      Solution

      Physical risks are direct financial losses caused by extreme weather events (e.g., floods, droughts, severe cyclones) that damage physical assets and disrupt supply chains.

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