Environment risk management: Take it back from the lawyers and engineers

Corporate environmental liabilities in the United States now stand at more than $250 billion. Many remain hidden on balance sheets, only to emerge as surprising and painful charges against earnings. Despite the scale of the problem, most corporations do not manage the environment as an integral part of their everyday activities. This need not be the case. The solutions to risk management issues are multiplying, permitting unprecedented discretion, flexibility, and effectiveness in the management of risk.

We believe there are three basic rules for developing integrated environmental risk management:
– Rule 1: Focus on risk, not liability (invest in the right risk)
– Rule 2: Choose your weapons carefully (invest in the right remedy)
– Rule 3: Don’t keep it all to yourself (find the right owner).