advantages and disadvantages of environmental risk management

1374 Words Nov 15th, 2013 6 Pages
Q.1 What are the advantages and disadvantages of environmental risk management?

Advantages:

1. Better strategy of company.

Through the environmental risk management, we are going to have a better understanding on the environment, which may make have a better decision making on company strategy. Usually, if we know a place which may suffer from earthquake or tsunami frequently, we may not build or open some department on that place in order to reduce risk. If we have better understand or information for environmental risk, we can avoid some risk by locating the facilities at best place. So, risk is reduced and better business plan can be run as we have better information.

2. Reduce the money and life loss bring by
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The risk management has its own limitation.

3. Increase company cost in risk management due to skilled staff employment and equipment purchasing.

Cost is needed to practice the environmental risk management. Practicing business risk management involves different cost like time cost of manager ,money cost on skilled staff employment and equipment purchasing. The high cost of risk management can highly reduce the profit of a business. It is a common problem of any risk management , however, it is more serious when it comes to environmental risk management. Extremely high-technology equipment is needed for better estimating a neutral disaster. For example, Joint Typhoon Warning Center(JTWC) in USA, using the highest technology level to monitor any possible disaster, and it used over billions of dollars to develop as the equipment is really high-tech. It is very costly for company or government to buy or invest the equipment needed for monitoring the environment risk.

2.What are the difficulties and challenges on implementing environment risk management in a company and society?

1. Staff may not have enough knowledge on risk management

A group of well trained professional people are needed to implement risk management cause environmental risk management is a complicated process, required calculation, analyzing , brain storming, etc. In some country, it is not easy to find professional risk manager. Like some developing country,