chapter  5
22 Pages

RISK MANAGEMENT INTEGRATION

The overall aim for organisations in managing risks is to ensure that they are built into the fabric of corporate decision making. In dealing with environmental risks an important issue then arises - where does environment fit into corporate processes? Several potential models are considered here with a particular emphasis on how environment might be integrated to avoid duplication of effort and ensure concerns are embedded within routine processes. Of course the models discussed cannot be regarded as prescriptive and the individual corporate context will determine which might be the most appropriate. A key factor is to ensure that environment is considered a strategic issue and receives appropriate senior level attention. This highlights some of the strengths and potential weaknesses of the formal environmental management standards such as ISO 14001 which are discussed here. They clearly offer an effective model for environmental risk control, yet care must be exercised to ensure that environmental concerns are not isolated and considered apart from other business concerns. For example, third party assessment can give credibility to a management system but when certification has been achieved the temptation to consider that the issue has been 'dealt with' and less worthy of board level attention must be resisted.