Physical hazards posed by climate change are a result of various factors, including weather events and long-term changes in the climate. While the exact nature and timing of extreme weather events are not yet clear, their impact on the economy is expected to be more severe in the future due to lower Gdp growth, higher unemployment, and significant changes in asset prices and profitability. Additionally, damage to the properties and operations of borrowers could impair asset values and creditworthiness, leading to increased default rates, delinquencies, write-offs, and impairment charges in the Barcages' resilience.