Which of the following types of risk is based on the premise that firms with high GHG emission levels will be threatened more frequently with lawsuits similar to those established in the tobacco, pharmaceutical and asbestos industries?
A) regulatory risk
B) supply chain risk
C) physical
D) litigation risk

Question

Quizplus · Accepted Answer

Litigation risk is based on the possibility of firms facing lawsuits due to their actions or products. In the case of high GHG emissions, there is a potential for legal action against firms similar to those seen in industries such as tobacco, pharmaceuticals, and asbestos. This is because these industries have previously faced litigation due to negative impacts on public health and the environment.

Which of the Following Types of Risk Is Based on the Premise