Building adaptive capacity is particular important in the context of climate change, where it refers to a latent capacity - in terms of resources and assets - from which adaptations can be made as required depending on future circumstances. Since future climate is likely to be different from the present climate, developing adaptive capacity is a prerequisite for the adaptation that can reduce the potential negative effects of exposure to climate change. In climate change, adaptive capacity, along with hazard, exposure and vulnerability, is a key component that contributes to risk, or the potential for harm or impact.[4]