Contextualising risk within enterprise risk management through the application of systems thinking

New and emerging risks create growing uncertainty and unpredictability within enterprise risk management. While ISO 31000:2009 is a progressive risk management framework, it is limited in its guidance on how to contextualise complex risks. The application of systems thinking to risk management provides the opportunity to better understand complexity by viewing risk and the consequence of change as part of overall system behaviour. System modelling tools enable organisations to better contextualise their risk landscape. These tools assist organisations to identify vulnerabilities between social and ecological variables in the system within they exist. Determining drivers of change leading to system vulnerabilities can assist in understanding threshold limits of the system, thus enabling the organisation to build system resilience and organisational sustainability.     

Risk management is not enough: a conceptual model for resilience and adaptation-based vulnerability assessments

The US government has focused considerable attention on enhancing our society’s ability to protect critical systems and services from disruptive events. Over the past decade, federal agencies have bolstered their efforts to identify and minimize threats using traditional risk-based approaches such as continuity of operations and disaster risk reduction processes. However, these valuable risk identification and management tools are limited because they rely upon foreseeable factor analyses of steady-state systems with predictable hazard frequencies and severities. In assessing the capability of complex adaptive systems to cope with disruptions, an overemphasis upon engineering resilience through risk management and planning for what is predictable may cloud or detract from our efforts to better understand a system’s emergent capabilities to withstand disruptions that are unforeseeable. This article contends that augmenting traditional risk approaches through the incorporation of methodologies grounded in socio-ecological system (SES) resilience principles offers a potential avenue for improving our agencies’ abilities to assess and manage both known and unknown risks. We offer a notional rationale for broadening our examination of system vulnerabilities and present a conceptual model that combines engineering and SES resilience paradigms to facilitate the identification, assessment, and management of system vulnerabilities. The Military Installation Resilience Assessment model described herein applies risk and resilience principles to evaluate whole systems, focusing on interconnections and their functionality in facilitating response and adaptation.     

Comparative risk analysis for metropolitan solid waste management systems

Conventional solid waste management planning usually focuses on economic optimization, in which the related environmental impacts or risks are rarely considered. The purpose of this paper is to illustrate the methodology of how optimization concepts and techniques can be applied to structure and solve risk management problems such that the impacts of air pollution, leachate, traffic congestion, and noise increments can be regulated in the long-term planning of metropolitan solid waste management systems. Management alternatives are sequentially evaluated by adding several environmental risk control constraints stepwise in an attempt to improve the management strategies and reduce the risk impacts in the long run. Statistics associated with those risk control mechanisms are presented as well. Siting, routing, and financial decision making in such solid waste management systems can also be achieved with respect to various resource limitations and disposal requirements.     

Adapting a holistic approach to flood management in the Hawkesbury–Nepean region: complexities and perceptions of the agencies involved

This paper looks into the complexity of managing flood risks in the Hawkesbury–Nepean catchment, Australia. Several aspects are explored: (1) the complexities created by the way different agencies are involved in assessing flood risks; (2) different perceptions on acceptable flood risk level; (3) community engagement in defining acceptable flood risk level; (4) views on a holistic flood risk management plan; and (5) challenges of a centralised information system. This study concludes that the complexity of managing a large catchment is exacerbated by the difference in the way professionals perceive the problem. This has led to (1) different standards for acceptable risks; (2) inconsistent attempt to set up a regional-scale flood management plan beyond the jurisdictional boundaries; (3) absence of a regional-scale agency with licence to share and update information; and (d) lack of forums for dialogue with insurance companies to ensure an integrated approach to flood management.     

Implementation of failure modes and effects analysis in detergent production companies: A case study

Failure mode and effect analysis (FMEA) is the most important method used by production companies to identify potential risks regarding occupational and health hazards and environmental hazards. This method is also useful in defining preventive actions to reduce the effects of these risks. Detergent production companies continually encounter many occupational and health hazards and environmental hazards, the management and reduction of which requires complex assessment in real‐world applications. This paper presents a framework for application of FMEA for managing and ranking identified risks in detergent production companies. A case study is presented to show the application of an FMEA to investigate the results of its application and the outcomes from the analysis. A risk priority number (RPN) is proposed for each distinct risk. The application of FMEA in the detergent production company resulted in grouping the RPN of the identified risks into four different categories. The main corrective actions, which are determined to reduce the RPNs, are presented in this paper. Improving the RPN of the main risks is observed after executing the corrective actions.     

Certification of environmental management systems—for iso 9000 and competitive advantage

ISO 9000 has become the buzzword of many industries worldwide as they strive to gain competitive advantage by registering their quality systems. At the same time, environmental performance and improvement is becoming increasingly important in the global marketplace. Work has begun to integrate these two important concepts into a new one: certification of environmental management systems. This article explains the new standard and why companies need to recognize and react to their international environmental impact.     

环境污染责任保险的美国经验及中国实践

环境污染责任保险是一种基于市场手段的环境风险管理方法,通过为具有环境污染风险的企业提供商业保险,从而为被保企业的环境污染及治理责任提供一定的保障,同时促进企业主动降低其环境风险。环责险在我国经过了多年的试点和推广,取得了一定成绩,但是也面临许多困难。本文借鉴环责险在美国发展的经验,识别环责险市场发展的条件,同时评价我国环责险市场发展是否具备这些条件,并为进一步促进环责险发展提供建议。     

The business implications of implementing ISO 14000

The ISO 14000 standards for environmental management systems (EMS) are voluntary standards intended to aid companies that wish to improve their environmental performance. The standards owe their existence, at least in part, to three widely shared views: (1) that existing environmental management systems are either inadequate or ineffective; (2) that companies will want to improve environmental performance for economic or social reasons; and (3) that governments and stakeholders will require companies to exercise greater control of the impacts to the environment through new regulations. ISO 14000 offers a solution—an ?integrated”? EMS, with components designed to effect sound management in any size organization and in any country. The standards are an embodiment of both the policy and practice of environmental management. This article is a consideration of the business implications of the ISO 14000 series of standards. How will a movement toward an integrated EMS be realized? Who will be in the best position to respond? ISO 14000 is a management system, and it carries with it business consequences.     

Voluntary environmental management system standards: Case studies in implementation

Many anticipate that over the next decade, voluntary environmental management system (EMS) standards will take on the same importance in the marketplace as the ISO 9000 quality standards; the draft international EMS standard (ISO 14001) is on pace to be completed by mid-1996. In the United States, despite rapidly growing interest in EMS standards, most companies and regulatory agencies are uncertain about their potential benefits and about the process of developing an EMS. Case studies of EMS implementation, particularly in small and medium-sized companies, are needed to demonstrate the process and identify areas in which further EMS guidance is needed for environmental managers. This article presents seven case studies of EMS implementation in small, medium-sized, and large companies. Each company is participating in an EPA-sponsored Demonstration Project in which a variety of organizations are piloting the implementation of EMS standards (the project is being coordinated by NSF International, a not-for-profit company specializing in environmental and public health standards and certification). The case studies, written by the companies themselves, share experiences of EMS assessment, planning, and implementation, and discuss challenges that are special to particular industries.     

Using ISO 14000 for improved organizational learning and environmental management

Since the adoption of ISO 14001, companies have examined the standard and considered certification. Although the framework is useful and enhancing environmental management systems is beneficial, the adoption of ISO 14001 alone will not provide maximum company benefits. Companies must strive for an improvement in environmental performance and financial performance that can be accomplished only through significant changes in corporate culture, structure, and systems. By developing core capabilities such as skills and knowledge, physical technical systems, managerial systems, and values and norms, companies can develop organizational learning to increase sustainable competitive advantage. This article examines how the ISO 14000 series of standards can be used to improve organizational learning and environmental management.     

生态环境风险管理与损害赔偿制度现状与展望

我国目前面临的生态环境风险形势复杂严峻，严密防控生态环境风险已成为“十四五”和中长期生态环境保护、美丽中国建设的重要任务之一。本文探讨了生态环境风险的概念、分类，系统梳理了生态环境风险评估与管理、生态环境损害评估与损害赔偿等领域的国内外管理经验与研究进展。在此基础上，重点剖析了我国生态环境风险管理面临的痛点与难点问题，从树立生态环境风险法治管理理念、构建生态环境风险管理战略布局、建立生态环境风险常态化管控体系、加强生态环境风险防控技术支撑、强化经济和社会治理手段助力风险管控、建设生态环境损害赔偿业务化工作体系等六个方面，系统提出了加强我国生态环境风险管理的对策建议，以期为更有效地防范化解重大生态环境风险提供决策参考。     

Justifying the cost of EMIS: Piloting lessons from Rhone-Poulenc

Two worlds are colliding as many companies are integrating environmental management with business management. Nowhere is this more evident than in the hundreds of companies that are now working to upgrade their environmental management information systems (EMIS), which are a critical component of business integration. Building a business case for EMIS requires crossing many disciplinary boundaries—knowing the language of information systems, accounting, business management, and environmental management. Hence, it is a very valuable skill for environmental managers to develop in order to build their function and their own careers. Some environmental and information systems professionals are attempting to develop a general set of guidelines for justifying the cost of EMIS—in particular, the useful emerging work of the Environmental Health and Safety Software Development Group. This article relates the experience of an EMIS development effort at Rhone-Poulenc, Inc.     

Environmental management information systems: New tools for measuring performance

Successful implementation of environmental management information systems (EMIS) has become essential to the success of total quality environmental management (TQEM) programs. Effective TQEM programs will be early indicators of which companies survive and thrive in today's competitive business environment. Highly competitive industries such as chemicals, electronics, and oil and gas are becoming very effective in cooperating to develop metrics, models, and tools that are based on business processes rather than regulatory edicts. Now electric power companies, newly exposed to market competition, are starting to develop and implement these metrics, standards, and tools. That industry provides a model for joining TQEM and EMIS.     

Self-organizing systems and environmental management

The characteristics of self-organizing systems are described and their implications for environmental management are discussed. It is concluded that the aim of management should be to enhance the capacity of the system for self-management, with active intervention being used only to steer it away from large discontinuities. Environmental managers must view ecosystems and themselves as parts of a larger sociobiophysical system, cultivate the capacity of environmental systems for self-management, and learn to live with change and uncertainty. Practical consequences of this approach for plans, policies, programs, and institutions are discussed.     

Food risks and the environment: changing perspectives in a changing social order

Risks related to food production and consumption are not a recent phenomenon. Through agricultural practices, the transport of agricultural and food products, the processing of food, its storage, and finally the consumption of food, risks have been externalized, mediated, contested and ingested. But agrofood systems have also been paralleled by routinized practices and institutions that attempt to reduce risks and sustain trust among the many actors involved in these food regimes. However, both the (definition of) food risks and the institutions and discourses used to dispel anxiety and build trust are far from stable throughout time. In the contemporary modern world-order, food risks and the practices and institutions dealing with these risks reflect the significant transformations in the agrofood system, the changing nature of the risks involved in food production and consumption, and the modifications in scientific risk assessment and risk management. This article provides an overview of the current debates, discussions and practices on actual and potential institutional transformations that parallel the emergence, assessment and management of food risks in reflexive modernity. Copyright © 2002 John Wiley & Sons, Ltd.     

Binational management of hazardous waste: The maquiladora industry at the US-Mexico border

Foreign-owned industry in the form of assembly plants, termed maquiladora, has become very important in Mexico to the extent that it represents the second largest source of foreign exchange and is a valuable source for employment and regional development. The economic prosperity gained from the rapid growth of the maquiladora industry has been accompanied by increased environmental and human health risks associated with generation of hazardous waste. Diversification of industry has resulted in the predomination of those sectors that likely use hazardous substances. The Mexicali-Calexico border region was selected to demonstrate the potential for environmental and health risks associated with the generation of hazardous waste. Estimates for the generation of hazardous waste were obtained from 34 maquiladora plants in Mexicali, represented by the electronic and electrical equipment and parts, mechanical and transportation equipment, and toys and sporting equipment sectors. Repeated detection of volatile organic compounds in the New River at the US-Mexico border suggests that hazardous waste from the printed circuit board industry in Mexicali is not being disposed of in a proper manner. Potential adverse health effects, such as carcinogenic and mutagenic responses associated with the detected volatiles, are discussed. US and Mexico national legislation and the Binational Environmental Agreement were examined for their adequacy to ensure proper management of hazardous waste generated by the maquiladora industry. Environmental policy options are presented that focus on: (1) increased environmental accountability of US parent companies for their maquiladora assembly plants in Mexico; and (2) more integration between US Customs and border states with the US Environmental Protection Agency to improve the binational management of hazardous waste generated by the maquiladora industry.     

Industry Agreement Acts and environmental management in Australia

In Australia many major developments are authorized by agreements negotiated between companies and the state government and ratified by Parliament as Agreement Acts The means by which these are negotiated and ratified, their terms, and their legal status are thus of great importance to Australian resource and environmental management These aspects are examined, revealing a lessening of the tendency to provide special rights and privileges and a trend towards the inclusion of more resource and environmental management provisions in the Acts It is argued that major developments require special conditions beyond the scope of general laws in order to control their social and environmental side effects, and that Agreements Acts could be a valuable means to this end Ways of improving them from this point of view are discussed     

Prioritizing ecological and human welfare risks from environmental stresses

The ecological systems of Earth are subjected to a wide array of environmental stresses resulting from human activities. The development of appropriate environmental protection and management policies and the appropriate allocation of resources across environmental stresses require a systematic evaluation of relative risks. The data and methodologies for comprehensive ecological risk assessment do not exist, yet we do have considerable understanding of econological stress-response relationships. A methodology is presented to utilize present knowledge for assignment of relative risks to ecological systems and human welfare from anthropogenic stresses. The resultant priorities, developed for the US Environmental Protection Agency's (EPA) relative risk reduction project, highlight global climate change, habitat alteration, stratospheric ozone depletion, and species depletion as the highest environmental risks, significantly diverging from the present emphasis by EPA and the public on toxic chemical issues. Enhanced attention to ecological issues by EPA and development of ecological risk assessment methodologies that value ecological and economic issues equitably are key recommendations.     

Reinsurer Opinions of Environmental Management Systems Concerning Insurance for Pollution

Despite an increasing interest in reinsurance and environmental manage ment systems (EMSs) concerning pollution, little research has been conducted on the subject. This paper presents the findings from a survey of reinsurers' views on this issue. Reinsurers give EMSs a cursory consideration in their pollution risk assessments because they inadequately appraise pollution liability, have no explicit requirements regarding risk management and there is little evidence to show that they are effective at reducing environmental risks. Reinsurers' underwriting assessments and post-loss investigations are poorly developed concerning public liability insurance. Reinsurance and EMSs are currently weak methods to prevent and control pollution risks.