how financial institutions face sustainability risk?

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SUSTAINABILITY RISK MANAGEMENT

Sustainability risk management is a business strategy that combines the profit goals with a company's environmental policies. SRM is generally imlement to focus on the environmental effects of each business process individually and then look for ways to minimize them.Sustainability risk is the uncertainity happend to the sustainable groeth of the firm. The corporations and business must have to give aproper attention to the enviornment system for the growth of the frim. Green policies are very much attractive at this time and organisation gives atmost care for these kind of programs for the purpose of enviornment protection.So this kind of policies will influence the profitability of the firm so that firms need to focus on the enviornmental issues. Actually sustainability risk is the risk involved or related with the enviornmental and economical factors. So the business always give high prioritisation to these enviornmental policies.

An effective sustainability risk management framework can help management to identify the emerging trends and issues that may affect the operation of the firm. Examples of emerging issues include the availability of various energy source, changing government regulations etc.Analyst, network supporters and other IT professionals are included in the risk reduction program. Risk is reduced by following government policies and guidelines along with the enviornmental and economical analysis. This is how sustainability risk is facing by the institutions.

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jeff jeffy answered 1 year ago

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