  The PCL framework provides a comprehensive climate risk management approach
grounded in the assessment of societal values of financial and non-financial
loss tolerability. The framework optimizes response action across three main
clusters, namely preemptive adaptation (P) or risk reduction, contingent
arrangements (C), and loss acceptance (L); without a predetermined hierarchy
across them. The PCL Framework aims at including the three clusters of outlay
within a single continuum, and with the main policy outcome being a balanced
portfolio of actions across the three clusters by way of an optimization
module, such that the aggregate outlay is optimized in the long-term. It is
proposed that the approach be applied separately for each hazard to which the
target community is exposed. While it is currently applied to climate-related
risk management, the methodology can be repurposed for use in other contexts
where societal buy-in is central.
