Abstract
The foremost underlying force for all business response actions to climate risk lies at the level of cognition among and between organizational actors. Cognition, or the way in which company actors think about climate risk in its various dimensions, drives response actions to mitigate climate risk, guided by two assumptions. One, firms will be dealing with a novel set of ‘deeply uncertain’ risks previously unconnected with organizational resources, processes, and informal and formal risk practices. Two, firms will be enacting risk response preferences through private acts of corporate decision-making (later to become publicly disclosed in most cases) based on their cognition of the response need, their interpretations of reliable data and information, and their perception of the risk features attributed to climate risk.
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Dowbiggin, A. (2021). Cognitive Challenges. In: Climate Risk and Business. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-78244-3_2
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