Enterprise Risk Management - Applying enterprise risk management to environmental, social and governance-related risks

Publicatie 15/11/2018 COSO Enterprise Risk Management.pdf
Enterprise Risk Management - Applying enterprise risk management to environmental, social and governance-related risks

ESG, ofwel Environmental, Social en Governance gerelateerde risico’s, kunnen een grote invloed hebben op het succes en zelfs de continuïteit van een organisatie. COSO en de World Business Council for Sustainable Development (WBCSD) hebben guidance ontwikkeld om deze risico’s in kaart te brengen en effectief te managen: Enterprise Risk Management. Daartoe wordt het (nieuwe) COSO ERM-model toegespitst op de ESG-risico’s: "Applying enterprise risk management to environmental, social and governance-related risks."

This guidance is designed to help risk management and sustainability practitioners apply enterprise risk management (ERM) concepts and processes to ESG-related risks.

The purpose of this guidance is to help an entity achieve:

  • Enhanced resilience: An entity’s medium- and long-term viability and resilience will depend on the ability to anticipate and respond to a complex and interconnected array of risks that threaten the strategy and objectives.
  • A common language for articulating ESG-related risks: ERM identifies and assesses risks for potential impact to the strategy and business objectives. Articulating ESG-related risks in these terms brings ESG issues into mainstream processes and evaluations.
  • Improved resource deployment: Obtaining robust information on ESG-related risks enables management to assess overall resource needs and helps optimize resource allocation.
  • Enhanced pursuit of ESG-related opportunities: By considering both positive and negative aspects of ESG-related risks, management can identify ESG trends that lead to new opportunities.
  • Realized efficiencies of scale: Managing ESG-related risks centrally and alongside other entity-level risks helps to eliminate redundancies and better allocate resources to address the entity’s top risks.