GARP SCR Practice Test Questions | DumpsTech GARP Certification Exam

Questions # 31:

A European bank considers investing in an offshore wind farm project. A bank ESG analyst assists in the origination and execution of green and sustainable finance transactions to finance the project. The analyst recommends a loan to finance the project by gathering related materials on sustainability-linked loans (SLLs), green loans, and corresponding market trends.

Which of the following loans is the analyst likely to recommend?

Options:

Green loan because in contrast to SLLs, green loans are rapidly being adopted by a variety of sectors and tied to numerous KPIs.

Green loan because it offers greater flexibility of use than SLLs as green loans do not have loan usage reporting requirements.

SLL because the total volume of SLLs exceeded that of green loans over the past 5 years.

SLL because SLL issuance is highly concentrated in renewable energy projects and the power generation sector.

Questions # 32:

A large insurance company in South America expands use of climate scenario analysis. The company used RCPs in previous scenario analyses but now hires an actuary with climate expertise to incorporate SSPs in this process.

How can the actuary advise the insurance company use SSPs going forward?

Options:

Demonstrate how SSP and RCP trajectories typically show contradictory emissions trend trajectories.

Combine SSPs with different RCPs to assess climate policy options.

Eventually replace SSPs with RCPs by integrating underlying data assumptions.

Use SSPs to provide alternative emissions pathways to RCPs.

Questions # 33:

A mid-size bank in Australia will implement scenario analysis as part of a risk assessment to measure climate risk. A risk manager in charge of this project reviews current practices among peers worldwide.

To align with common and well-established practices of financial firms, how will the risk manager implement scenario analysis to assess climate risk?

Options:

Create inclusionary criteria for investments based on climate risk

Provide ex-ante climate risk analysis to national regulators

Compare the likelihood of physical and transition risks

Examine portfolio-level exposures in various climate outcomes

Questions # 34:

In response to policy and technology changes, a cement manufacturer looks for new opportunities to raise profits by reducing GHG emissions. Because the cement industry accounts for a considerable percentage of global emissions, the manufacturer joins a coalition of company peers. The coalition lobbies country governments to adhere to the Paris Agreement nationally determined contributions (NDCs).

Which of the following actions does the coalition recommend?

Options:

Aligned the first round of NDCs with a 2°C warming limit, followed by a second round of a 1.5°C limit.

Set 2019-2022 NDCs at a smaller scale to comply with the “ratchet” mechanism.

Tighten NDCs and report NDC progress every 5 years at COP meetings.

Revise NDC targets annually and submit to the UN for review and approval.

Questions # 35:

The CRO of an automobile manufacturer in North America prepares a keynote address on risks in the auto sector over the next decade. The CRO highlights the primary technology risks facing its line of internal combustion engine (ICE) vehicles.

At approximately what point will many manufacturers of ICE vehicles experience a significant technology risk?

Options:

Renewable energy costs fall to USD 0.10 per megawatt hour

The cost of battery packs falls below USD 0.50 per kilowatt hour

Renewable energy costs fall to USD 35.00 per megawatt hour

The cost of battery packs falls below USD 100.00 per kilowatt hour

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