Climate change poses a significant threat to business. Many companies are exposed to multiple channels of climate-related risks including physical climate risks parameters, such as rising sea levels and more extreme weather events, as well as transitional risks related to economic, social, and security disruptions arising from new development in regulations, markets, technologies, and reputation. However, climate risks can be managed, and the risks may be turned into opportunities. Thus, the purpose of climate risk management is to ensure a smoother transition towards low or net-zero business model by careful analysis of the drivers and the financial impact of the climate risks. Finally, this chapter includes a discussion on the management of carbon-related assets and liabilities and elaborates on the use of an internal carbon price (ICP) as a strategic tool for carbon risk and asset management.