UNICEF-IndusInd Bank’s Partnership To Boost Climate Resilience And PNB Strengthens Climate Action As A PCAF Signatory Climate risk refers to the potential adverse impacts of climate change, including extreme weather events, long-term changes in temperature, precipitation patterns, rising sea levels, and their cascading effects on ecosystems, infrastructure, and communities. It is typically categorised into : 1 . Physical Risks :- Acute: Sudden events like hurricanes, floods, heatwaves, or wildfires. Chronic: Gradual changes such as rising temperatures, sea-level rise, or desertification.