Climate Risk Management and Corporate Resilience

Abstract

Climate change has emerged as a significant challenge for organizations across different sectors, influencing operational stability, financial performance, supply chain continuity, and long-term competitiveness. Climate Risk Management (CRM) provides organizations with systematic approaches to identify, evaluate, and reduce climate-related threats while developing adaptive capabilities. Corporate resilience enables firms to withstand environmental disruptions, recover from climate-related shocks, and transform risks into opportunities for sustainable growth. This article examines the relationship between climate risk management practices and corporate resilience by discussing strategic adaptation, sustainable governance, risk assessment mechanisms, technological innovation, and organizational preparedness. Effective climate risk strategies support businesses in improving decision-making, protecting resources, and achieving long-term sustainability objectives. The study highlights that organizations integrating climate considerations into strategic planning are better positioned to manage uncertainty and maintain competitive advantage in a rapidly changing global environment: