Climate change risk is the risk faced by business and government organizations as a result of climate change and impacts on natural and human systems. A common approach to addressing this exposure to loss aims to reduce vulnerability associated with climate risk by incorporating climate-smart decision making into the risk management process. The risk manager makes climate-related decisions or actions that make sense in terms of overall business strategy, whether or not a particular climate threat materializes in the future. Three examples include efforts to reduce greenhouse gas (GHG) emissions, energy conservation, and the adoption of green building measures and approaches. Climate change risks include physical risks, litigation risks, reputational risks, shareholder risks, regulatory risks and competition risks.