9.6 Environmental Risk Management
205
Conceptually, inherent risks mean the risks that could arise due to the activity
and location. For example, when dealing with land management, the use of proper
management does not eliminate all inherent risks. Some typical risks that arise from
nutrient management activities are contamination of the waters, undesired changes
within the soil nutrient status, application of fertilizer to the non-target land as well
as the accumulation of impurities within the soil profile (Cooper et al. 2005). Site
factors and the number of applied nutrients govern inherent risk factors. This implies
that risks increase with increased levels of nutrient inputs.
From the explanations provided above, briefly differentiate environmental risk
assessment and environmental risk management. Do this using the objectives
of each, processes, and stakeholders involved.
9.6 Environmental Risk Management
Environmental risk management entails the identification, evaluation as well as
prioritization of risks followed by the application of resources to reduce and control
the likelihood of unfortunate events. The principal objective of environmental risk
management is to ensure that uncertainty does not affect the realization of business
goals. Risks could emanate from different sources, including financial markets
uncertainty, project failure threats, legal liabilities, accidents, natural disasters, and
natural causes. Event can be classified as negative or positive with the adverse
events being perceived as risks, while the positive events were categorized as
opportunities. Various environmental risk management standards are used today,
including the Project Management Institute, National Institute of Standards and
Technology (NIST), and the International Organization for Standardization (ISO)
(Pritchard 2014). Some strategies used for management of threats are avoidance,
reduction of negative impact, transfer of risk to another party, or retention of all
actual/potential repercussions of a specific threat.
Briefly explain these strategies of environmental risk management.
Five major risk management steps combine to deliver an effective risk management process. These are an identification of the risk, analysis of the risk, evaluation
or ranking of the risk, treatment of the risk, and monitoring and reviewing the
risk. Before clearly understanding risk and dealing with it, there is a need to
understand the context. The context could be established through consideration
of the organizational or strategic context. The strategic context refers to the
205
Conceptually, inherent risks mean the risks that could arise due to the activity
and location. For example, when dealing with land management, the use of proper
management does not eliminate all inherent risks. Some typical risks that arise from
nutrient management activities are contamination of the waters, undesired changes
within the soil nutrient status, application of fertilizer to the non-target land as well
as the accumulation of impurities within the soil profile (Cooper et al. 2005). Site
factors and the number of applied nutrients govern inherent risk factors. This implies
that risks increase with increased levels of nutrient inputs.
From the explanations provided above, briefly differentiate environmental risk
assessment and environmental risk management. Do this using the objectives
of each, processes, and stakeholders involved.
9.6 Environmental Risk Management
Environmental risk management entails the identification, evaluation as well as
prioritization of risks followed by the application of resources to reduce and control
the likelihood of unfortunate events. The principal objective of environmental risk
management is to ensure that uncertainty does not affect the realization of business
goals. Risks could emanate from different sources, including financial markets
uncertainty, project failure threats, legal liabilities, accidents, natural disasters, and
natural causes. Event can be classified as negative or positive with the adverse
events being perceived as risks, while the positive events were categorized as
opportunities. Various environmental risk management standards are used today,
including the Project Management Institute, National Institute of Standards and
Technology (NIST), and the International Organization for Standardization (ISO)
(Pritchard 2014). Some strategies used for management of threats are avoidance,
reduction of negative impact, transfer of risk to another party, or retention of all
actual/potential repercussions of a specific threat.
Briefly explain these strategies of environmental risk management.
Five major risk management steps combine to deliver an effective risk management process. These are an identification of the risk, analysis of the risk, evaluation
or ranking of the risk, treatment of the risk, and monitoring and reviewing the
risk. Before clearly understanding risk and dealing with it, there is a need to
understand the context. The context could be established through consideration
of the organizational or strategic context. The strategic context refers to the