This is how this business works if i dont do it

•
This is how this business works
•
If I don’t do it, somebody else will
•
It works, so let’s not ask too many
questions
•
Nobody will notice and nobody
will be
hurt
Opaqueness because the behaviour is
unethical there is a strong inclination to not
disclose
Routinely ask the following questions:
•
Are you doing what you promised to do?
•
Are you using your best knowledge and
intention in doing it?
•
Are you doing what public authorities,
superiors, colleagues and business
partners expect you to do, and if not
why?
•
Are you conforming to the mission
and
the values of your company, as they are
publicly stated?
•
Will your actions enhance public
confidence in your company and
industry?
•
Would you behave similarly if your
actions were publicly observed?
Source: Ignazio Angeloni, Member of the Supervisory Board of the ECB, Venice, 26 Sep. 2014

Going beyond
compliance
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2

The intent is to expand the role of compliance risk
management to be a competitive advantage:
–
Application of ethical principles: there must be universal adherence
to the organisation’s compliance policies and codes of ethics.
Directors, senior managers, managers and all other levels of staff
must be subjected to these provisions
–
Greater use of technology to speed development of products and
lower compliance costs

Organisations that embed compliance into their business
behaviors, supported by strong positive ethical
considerations:
–
receive higher levels of customer and employee commitment
–
enhanced brand recognition and value, and
–
better stakeholder returns and market capitalisation

Environmental Risk defined
Environmental Risk is the risk that the impact of a
organisation's activities on the natural environment may
result in the organisation failing to meets its financial and
non-financial objectives including danger to health and
safety, reputational damage and non-compliance with
regulation.
It also includes external uncertainty impacting an
organisation through climate change and the resulting
uncertainty in costs of regulation, impact on business
practice, investor confidence and business strategy.
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3

Business impacts from
environmental risk
12
4
Environmental risk causes reduced firm value as a result of
exposure to:

The imposition of increased operating costs arising from compliance
with government legislation

Fines and penalties for breaches of environment laws

Changing consumer preferences and loss of existing customers
from the publication of deficiencies in environmental
performance

Outlawed factors of production causing a change in business
process

Impact on sustainability of debtors and supply chain

Rising insurance costs

Shifts in investor support

Greater risk to physical assets

Greater regulatory uncertainty causing difficulty in making long-term
investment decisions

Emission orientated risk management strategy
Avoid emissions or, as a minimum, contain the emissions
resulting from any incident:

What can the corporation do in its operations to reduce the
risk of emissions external to the corporation?