Risk Management

Risk management is the structured process of identifying, assessing, prioritizing, monitoring and responding to risks that could affect an organization’s objectives, operations, finances, reputation or long-term resilience. It involves evaluating the likelihood and potential impact of different risks, developing measures to avoid, reduce, transfer or accept them, and continuously reviewing how risks evolve. In a sustainability context, risk management can include climate, environmental, regulatory, supply chain, social and governance risks, as well as transition and physical climate risks. Effective risk management helps organizations make informed decisions, strengthen resilience, meet regulatory expectations and reduce exposure to unexpected financial or operational impacts.