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The Importance of Sustainability. The 90% of executives think sustainability is important, only 60% of companies have a sustainability strategy. Often, companies that speak of being sustainable are lacking when it comes to implementation. One of the reasons I believe this is happening is because CEOs and corporate boards are not as engaged as they should be with sustainability strategies.
In Business, Sustainability refers to doing Business without negatively impacting the Environment, Community, or Society as a whole. Sustainability in Business generally addresses two main categories:
Sustainability can be defined as providing for the present needs without compromising the needs of the future generations to meet theirs. It has three pillars: economic, environmental and social.
Risk management is the process of identifying, assessing and controlling financial, legal, strategic and security risks to an organization’s capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.
If an unforeseen event catches your organization unaware, the impact could be minor, such as a small impact on your overhead costs. In a worst-case scenario, though, it could be catastrophic and have serious ramifications, such as a significant financial burden or even the closure of your business.
To reduce risk, an organization needs to apply resources to minimize, monitor and control the impact of negative events while maximizing positive events. A consistent, systemic and integrated approach to risk management can help determine how best to identify, manage and mitigate significant risks..
