Regresar

Evaluating the firm's environmental risk: A conceptual framework

Abstract:

This chapter is organised into three sections. The first two sections outline the conceptual framework and the empirical procedure used in this project to evaluate the environmental risk generated by the firm. Risk is defined as the result of combining potential hazard, vulnerability and exposure. The framework suggests that the gap separating real - or managed - risk and potential - or evaluated - risk widens with less uncertainty and greater governability. The third section provides a description of the governability of environmental impact in Latin America, where the divide between real and potential risk is low, and where, therefore, methodologies that evaluate potential risk may also be appropriate for interpreting the extent to which evaluated risk is being managed.