Davos, Switzerland 20 January 2020: Today, joined by global business leaders in Davos, the World Business Council for Sustainable Development (WBCSD) launched its report “An enhanced assessment of risks impacting the food and agriculture sector”. The report dives into how a dynamic risk assessment can improve companies’ risk practices and identify crucial aspects to continue creating long-term value.
The current risk landscape for business has changed as all of the top five risks identified for likelihood were environmental according to the World Economic Forum Global Risk Report in 2020. In addition, the complexities and connectivity of environmental, social and governance (ESG)-related risks mean companies must assess risks not just individually, but as an interconnected and aggregated group.
“We are seeing it more and more: companies who aren’t managing their ESG-related risk are missing out on opportunities and even going bankrupt. Due to their complex nature, ESG-related risks need a dynamic risk assessment going beyond the limited binary likelihood/impact axis. In this report, we’ve brought it to a practical level with nine WBCSD member companies showing how applying different prioritization criteria can support and improve understanding and management of ESG-related risks“ elaborates Gordon Darling, Director at WBCSD.
This report presents analyses from the application of an enhanced risk assessment technique - KPMG’s Dynamic Risk Assessment methodology - to the risk landscape represented by the perspectives of nine leading companies operating in the food and agricultural sector. The report is intended to help companies more effectively assess their exposure to food system challenges and to integrate this knowledge into target setting and solution building.
The report is a continuation of WBCSD’s risk work and the guidance built in collaboration with COSO on Applying Enterprise Risk Management to Environmental, Social and Governance-related Risks.
Read the report to understand for key learnings on how a dynamic risk assessment can be beneficial to your company.