Chapter 12
Meeting the Stakeholder Needs
and Sustaining Business Through
Sustainability Risk Management Practices:
A Case Study of Malaysian
Environmentally Sensitive Companies
Nazliatul Aniza Abdul Aziz and Norlida Abdul Manab
Abstract Sustainability issues such as climate change, carbon emissions, and
energy consumption have become increasingly important issues among business
organisations, academics and policy makers. Considering this complexity, stakeholders currently demanding companies to have a sound risk management that are
aligned to their interest. Sustaining business requires a strong foundational on the
economic, environmental and social aspects to address risks and capture value.
Sustainability risk management (SRM) is a process that systematically integrates
environmental, social, and economic aspects to address emerging risks and other
non-quantifiable risk for company survival. This study aims to examine the impact
of SRM practices on the company survival among the environmentally sensitive
companies in Malaysia. A case study was carried out to examine the SRM implementation among the environmentally sensitive companies. The finding shows that
leadership and compliance are considered as important factors in implementing
SRM programme. Other factors such as sound risk culture, adequate risk management tools, and effective business continuity planning are crucial to support SRM
implementation. Overall findings revealthat the companies are at the early stage
implementing SRM programme and denote there is much room for improvement in
the risk management process to create long-term value creation for the stakeholders.
This study provides empirical evidence on the significance of SRM factors to the
company survival. Given the huge environmental and social costs arising from
sustainability issues, companies should intensify their effort to fully implement
SRM programme across the organisation to sustain longer.
Keywords Sustainability issues · Sustainability risk management (SRM) ·
Environmentally sensitive companies · Company survival
N. A. A. Aziz · N. A. Manab (*)
School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia,
Sintok, Kedah State, Malaysia
e-mail: norlida@uum.edu.my
© Springer Nature Singapore Pte Ltd. 2020
A. Omran, O. Schwarz-Herion (eds.), Sustaining our Environment for Better Future,
https://doi.org/10.1007/978-981-13-7158-5_12
195
Meeting the Stakeholder Needs
and Sustaining Business Through
Sustainability Risk Management Practices:
A Case Study of Malaysian
Environmentally Sensitive Companies
Nazliatul Aniza Abdul Aziz and Norlida Abdul Manab
Abstract Sustainability issues such as climate change, carbon emissions, and
energy consumption have become increasingly important issues among business
organisations, academics and policy makers. Considering this complexity, stakeholders currently demanding companies to have a sound risk management that are
aligned to their interest. Sustaining business requires a strong foundational on the
economic, environmental and social aspects to address risks and capture value.
Sustainability risk management (SRM) is a process that systematically integrates
environmental, social, and economic aspects to address emerging risks and other
non-quantifiable risk for company survival. This study aims to examine the impact
of SRM practices on the company survival among the environmentally sensitive
companies in Malaysia. A case study was carried out to examine the SRM implementation among the environmentally sensitive companies. The finding shows that
leadership and compliance are considered as important factors in implementing
SRM programme. Other factors such as sound risk culture, adequate risk management tools, and effective business continuity planning are crucial to support SRM
implementation. Overall findings revealthat the companies are at the early stage
implementing SRM programme and denote there is much room for improvement in
the risk management process to create long-term value creation for the stakeholders.
This study provides empirical evidence on the significance of SRM factors to the
company survival. Given the huge environmental and social costs arising from
sustainability issues, companies should intensify their effort to fully implement
SRM programme across the organisation to sustain longer.
Keywords Sustainability issues · Sustainability risk management (SRM) ·
Environmentally sensitive companies · Company survival
N. A. A. Aziz · N. A. Manab (*)
School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia,
Sintok, Kedah State, Malaysia
e-mail: norlida@uum.edu.my
© Springer Nature Singapore Pte Ltd. 2020
A. Omran, O. Schwarz-Herion (eds.), Sustaining our Environment for Better Future,
https://doi.org/10.1007/978-981-13-7158-5_12
195