Expert View – Risk Management: A Priority Executives Should Not Ignore
By: Davide Vassallo and Marco Pagnini, dss+
It’s no surprise that Boards of Directors (BoD) and corporate executives – especially of publicly traded companies – are particularly focused on financial performance metrics such as sales, earnings, and cash flow. Capital markets and quarterly or semi-annual shareholder expectations exert constant pressure on the C-suite to deliver sustainably strong performance results.
However, rarely are strong governance and management of Health, Safety and Environment (HSE) and corporate responsibility risks (i.e. impact on climate change, human rights, etc.) considered essential to healthy financial performance during board room discussions, despite the impact they can have on market capitalization and company reputation. By framing HSE and corporate responsibility initiatives in terms of operational risk management, company decision makers will be in a much better position to drive improved business and corporate responsibility performance.