Under the Spotlight: The Transition of Environmental Risk Management

In a recent survey, 320 risk managers around the world were asked to provide current thinking around environmental risk management and the approaches that companies are taking to identify, assess and manage the risks that they face within their organization and among their broader partner networks and supply chain. The key findings include: (1) Environmental risk is frequently managed in an ad hoc fashion. (2) There is no clear consensus about who should be responsible for environmental risk. (3) Many companies conduct strategic activities without a formal assessment of environmental risk. (4) Compliance with environmental legislation is a key strength. (5) Managing environmental risks associated with suppliers and partners is a key area of weakness. (6) Better reputation with customers and investors is seen as the main benefit of environmental risk management. (7) Climate change is an opportunity as well as a risk. (8) Lack of certainty about the impact of environmental liabilities and the future scope of legislation are the main obstacles to effective environmental risk management. (Read the report Under the Spotlight: The Transition of Environmental Risk Management.)