"Challenges" are similar to "problems". The word "challenges" sounds more positive than "problems", though. People use the word "challenges" at work, in sports, and so on:
We're definitely facing some challenges this quarter.
The Jets have had to overcome a lot of challenges this season.
When you "address" a challenge, you do something about it. You work to overcome (meaning fix or survive) the challenge. This is a formal phrase that's often used in politics and corporate businesses:
Mr. President, how do you plan to address these challenges?
Our team has done a simply spectacular job of addressing the challenges that our industry has been facing in recent years.