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The PCL framework provides a comprehensive climate risk management approachgrounded in the assessment of societal values of financial and non-financialloss tolerability. The framework optimizes response action across three mainclusters, namely preemptive adaptation (P) or risk reduction, contingentarrangements (C), and loss acceptance (L); without a predetermined hierarchyacross them. The PCL Framework aims at including the three clusters of outlaywithin a single continuum, and with the main policy outcome being a balancedportfolio of actions across the three clusters by way of an optimizationmodule, such that the aggregate outlay is optimized in the long-term. It isproposed that the approach be applied separately for each hazard to which thetarget community is exposed. While it is currently applied to climate-relatedrisk management, the methodology can be repurposed for use in other contextswhere societal buy-in is central.

The PCL Framework: A strategic approach to comprehensive risk management in response to climate change impacts