Question

Differentiate between environmental risk control and environmental risk transfer.

Answer 1

Following are the Difference Between Environmental Risk Control and Environmental Risk Transfer;

1.Environmental risk control means the action which is required to protect environment should be monitored and controlled by the manager.It is responsibility of manager to manage risks and make sure your business should not affected due to environmental risk.

Environmental Risk Transfer is a tool which is used by corporate manager that eliminate environmental liability to organization and which must be cost effective.

2.In risk control management has to monitor and supervise the risk which can be faced by organization due to environmental issue.so organization should conduct internal and external analysis of environment to take any action to control it.

Environmental risk transfer is implemented for reducing their chances to suffer losses or decreases profit due to environment issue.In this case management take decision how the risk can be transferred to protect organization.

3.ENvironmental risk control done by management independently that means environmental risk control is not based on environmental transfer.

Environmental risk transfer is totally based on environmental control because the data which is calculated fer internal and external environment analysis which is function of environmental control is also used for environmental risk transfer.

4.Environmental risk control deals with total total control of risk that means organization should not suffer due to environmental reason.

Environmental risk transfer only deal with reducing the risk that means reduce the chances of suffering loss due to environmental issue.