Free Practice GARP SCR Exam Questions 2025

At an international finance bank, a lack of staff clarity regarding sustainability, climate, and ESG definitions led to overlapping and inefficient initiatives. To minimize inefficiencies, the sustainability department develops new terminology for use across the bank. What should the department include in this new terminology?

A climate analyst at a research institution analyzes climate risk for various companies. The analyst examines transmission channels of climate risk as part of the risk identification process. Which of the following examples can the analyst use to describe an operational risk transmission channel? 

The risk team at an agricultural company in Easter Europe evaluates crop yield production performance. The evaluation reveals high temperature and water shortages will likely harm crop production, and current company insurance will not mitigate this exposure. The team recommends increasing coverage by purchasing an additional insurance policy that includes area yield protection. According to the COSO ERM framework, which risk response strategy did the team recommend?

An industry association in Germany surveys members on business alignment with nationally determined contributions (NDCs). The association members express concern about potential cascading legal repercussions or penalties if governments do not conform to Paris Agreement pledges. An attorney at the association researches this issue and sends a memo to members. The memo should state the Paris Agreement legally obliges signatories to take what action?

An environmental agency for a southeast Asian nation increases funding to study historic climate change and its impacts. The agency funds a proposal for a scientific subject matter expert to conduct a large-scale study of the nation’s tree rings. What information will this study most likely reveal?