ABSTRACT
This chapter details environmental risk management (ERM) only as it relates to the Providers of Financial Services' (PFSs) core internal and external business. The existence of environmental risks and uncertainties is as old as the world itself. In view of spreading pollution, over-use and depletion of various natural resources, we also suggest the singling out of an environmental access risk reflecting scarcity and lower quality of particular resources. In addition to the typology of environmental risks and liabilities related to the activities of PFSs' customers, as well as their own as outlined above, the following general criteria may be integrated into consistent risk assessment of customer and its proposal. Several factors could be used to determine the significance and acceptability to a PFS of environmental risks that may be associated with customer's application. ERM, which is different from traditional risk management because of the complexity of defining the full scope of environmental concerns, must be embedded in a PFS's EMS.
