Understanding and managing climate risk has become a business imperative in our rapidly changing world.

Industries across the globe are feeling the brunt of climate change, necessitating immediate, thoughtful action. One effective approach is to incorporate climate risk management strategies into operational procedures via a tabletop exercise (TTX) scenario approach. A TTX is a discussion-based activity where team members meet in an informal setting to discuss various scenarios to identify potential vulnerabilities and develop mitigation strategies. This blog post will explore how businesses can utilize the TTX scenario approach to tackle climate risks. 

To begin, we must acknowledge that climate risk encompasses a variety of factors, from increased frequency and intensity of natural disasters to regulatory shifts aimed at reducing carbon emissions. These risks are typically divided into physical risks, transition risks, and liability risks. Physical risks refer to the direct impacts of climate change, such as extreme weather events. Transition risks involve the financial implications of adapting to a low-carbon economy, while liability risks relate to legal consequences for insufficient action on climate change. 

Crafting the Climate Risk Tabletop Exercise  

A climate risk Tabletop Exercise should start with the development of a set of plausible scenarios that the organization might face. This could involve anything from a flood that impacts a major production facility, to regulatory changes mandating a quick shift to renewable energy sources, or lawsuits resulting from alleged failures to adequately disclose climate risks. 

Once the scenarios are created, stakeholders across the organization come together to discuss each one. They walk through the steps the organization would take in response, identifying areas of strength and potential vulnerabilities. This is not a test, but rather an opportunity to learn and improve the company’s resilience to climate risk. 

Related: Webinar Video Clip: 5 Steps to Creating, Delivering and Evaluating Simulation Exercises

Tabletop Exercise Engagement and Collaboration  

A crucial part of a successful TTX is engagement from all relevant departments. Climate risk permeates every aspect of a business, from supply chain logistics to financial planning, legal affairs to public relations. As such, the process should be cross-disciplinary, ensuring diverse perspectives and comprehensive solutions. 

Identifying Weaknesses and Opportunities 

The value of a TTX lies in its ability to identify gaps in preparedness, potential weaknesses, and areas for improvement. The goal is not to solve every issue on the spot, but rather to highlight where further attention is needed. It can also uncover opportunities for innovation, such as the development of new, sustainable technologies or approaches that both mitigate climate risk and drive business growth. 

Related: The Crisis Simulation – Scenario Planning

Action Plan Development 

Following the TTX, an action plan should be created, detailing the strategies and steps needed to address identified vulnerabilities and pursue opportunities. This might include investing in renewable energy, changing suppliers to reduce carbon footprint, or obtaining appropriate insurance coverage. The plan should also include procedures for regular review and adjustment as circumstances change. 

Fostering a Culture of Climate Resilience by Conducting Tabletop Exercises  

Importantly, the TTX scenario approach should foster a culture of climate resilience within the organization. By engaging in ongoing, active discussions about climate risk, businesses can create a mindset of preparedness and adaptation. This is critical not just for managing immediate risks, but also for positioning the organization to thrive in a low-carbon economy. 


Climate risk is a complex, multifaceted issue that poses significant threats to businesses, but also offers opportunities for innovation and growth. The Tabletop Exercise scenario approach is a valuable tool in understanding these risks, identifying vulnerabilities, and developing effective mitigation strategies. By fostering a culture of climate resilience, businesses can not only safeguard their operations but also leverage climate action as a driver of long-term success. 

Ultimately, addressing climate risk is not just about protecting our businesses—it’s about safeguarding our planet for future generations. By incorporating climate risk management into our business strategies, we can contribute to the global effort to mitigate climate change while ensuring the sustainability and success of our enterprises. 

Beyond the Tabletop Exercise 

Tabletop exercises, while extremely useful, are just one piece of the larger puzzle. Climate risk should be embedded in the wider business strategy. Businesses should continuously monitor the global landscape for emerging climate risks and opportunities. This includes maintaining an understanding of scientific advances, regulatory changes, shifting consumer attitudes, and technological breakthroughs. 

In addition, communicating your climate risk strategies to stakeholders is crucial. Transparency can help build trust with consumers, investors, and the wider public. It showcases your commitment to tackling climate change, reinforcing your brand’s integrity and resilience. 

Lastly, remember that tackling climate risk is not a one-off task but an ongoing process. It requires persistent effort, regular re-evaluation, and a willingness to innovate and adapt. The world is changing rapidly, and businesses must change with it. 

Final Word 

The dangers posed by climate change are real and pressing, but they are not insurmountable. By utilizing tools like the TTX scenario approach and fostering a culture of climate resilience, businesses can navigate the risks and seize the opportunities presented by our changing climate. 

In the process, we can move beyond seeing climate action as a necessary cost and start viewing it as an opportunity for growth, innovation, and long-term sustainability. And in doing so, businesses can play a key role in the global effort to combat climate change. 

Our journey toward climate resilience might be challenging, but it’s one we must embark on. As we navigate through these challenges, the words of Ban Ki-moon, the former Secretary-General of the United Nations, ring true: “We are the first generation to be able to end poverty and the last generation that can take steps to avoid the worst impacts of climate change.” 

The responsibility is enormous, but so too are the opportunities. As businesses, we have the potential to make a real difference – for our bottom line, our customers, our communities, and the world. Let’s embrace the challenge and turn climate risk into climate resilience. 

Rob Burton
Rob Burton

Rob is a Principal at PreparedEx where he manages a team of crisis preparedness professionals and has over 20 years of experience preparing for and responding to crises. Part of his leadership role includes assisting PreparedEx clients in designing, implementing and evaluating crisis, emergency, security and business continuity management programs. During his career Rob has worked for the US State Department’s Anti-Terrorism Assistance Program, as a crisis management consultant in Pakistan and Afghanistan where he negotiated with the UN and Pashtun tribal warlords and he served with the United Kingdom Special Forces where he operated internationally under hazardous covert and confidential conditions. Rob was also part of a disciplined and prestigious unit The Grenadier Guards where he served Her Majesty Queen Elizabeth II at the Royal Palaces in London. Rob was a highly trained and experienced infantryman serving in Desert Storm and commanded covert operational teams and was a sniper. Rob has keynoted disaster recovery conferences and participated in live debates on FOX News regarding complex security requirements and terrorism. Rob has a Queen’s Commendation for Bravery.