Facet-Hierarchical Approach to the Classification of Climate Risks in the Context of the Economic Activity of the Enterprise

Abstract

The article presents a facet-hierarchical approach to the classification of climate risks in the context of the economic activity of an enterprise. The relevance of climate issues is due to the unprecedented  pace of global warming in previous decades and the increased climate impact on  the  economy, not  only at  the  macroeconomic  level, but  also at  the  level of individual organizations. An important task for the enterprise is to create such a risk classification system that will allow not only to identify and aggregate information about the risks associated with climate change in the context of economic activity, but also to ensure a rapid operative response to existing and emerging hazards. The purpose of this work is to study the possibilities of using the facet-hierarchical method of climate risk classification in application to risk management in the context of the economic activity of an enterprise. The structure of the classifier is built on the basis of the principle of integration of the enterprise activity, presented in the form of four main subsystems: object, process, design and environment. An important addition to the facet approach is the hierarchical structure of each facet. The hierarchy of subordinate features is built within each facet and allows taking into account, on the one hand, the multilateral nature of the climate impact, on the other hand, the complexity of the economic structure of the enterprise. The proposed method can be modified depending on specific practical tasks and integrated into the overall risk management system of the organization. The information obtained based on logically proven accounting, classification and risk assessment can contribute to the adoption of effective management decisions and increase the value of the company.