8 Risks, Mititgation, and Positive Impacts
Section Overview
| Duration | Slides | Materials | Key Points |
|---|---|---|---|
| Central Park Bee example | Risks can and need to be monitored and, where possible, mitigated. |
8.1 Environmental and Social Risks
This section begins by clarifying the key concepts of environmental and social risks. Make sure to read through the notes on the slides before. Try to come up with a few examples that fit your local context. This can be a nice addition to what your participants might identify.
Environmental and social risks can over time develop into financial risks for the enterprise. That is one of the reasons why it is important to keep a close eye on them.
These slides should illustrate that all businesses are embedded in an environmental and social context. Paying attention to and taking care of that context is a crucial part of being a responsible, and successful, business. You should also make the participants aware of increasing scrutiny in many land use sectors, such as forests and agriculture, as well as marine or coastal sectors. Prepare some examples of news headlines, ideally from your context, to illustrate this point.
8.1.1 E&S Risk and Impact Framework
Risk Monitoring is not only done by individual businesses but also of high interest to investors and regulators. The E&S Risk and Impact Framework is a good illustration of what these stakeholders think about when talking about risk management and can serve as an idea for your participants.
8.1.2 Assessing Risks
Once risks are identified, a business needs to assess them. To do so, an enterprise needs to evaluate the likelihood that a risk materializes and its potential impact.
But you should calm them a little and stress that they do not need to perform risk analysis at the level of an international investor. It is sufficient that they know of its importance and know how to carry it out for some of the key risks their business might face.
8.2 Going from Negative to Positive Impacts
Mitigating risks is not where the journey has to stop! Restoration businesses can do a lot to go from preventing negative impacts to generating positive ones. End this section on a high note so that your participants do not become too demotivated by possible risks that their business faces. Highlight the possibilities that successful risk management can bring.