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The risk management factor reflects the reduction in the likelihood that a company will suffer some loss, damage or disruption. It may include:
• Risk profile:
- Elimination or reduction of business disruption by proactive consideration of
environmental and social issues (e.g. in site location)
- Elimination or reduction of potential future costs and production delays
- Improved supply chain reliability
- Reduced vulnerability to changing regulations by being 'beyond compliance'
- Reduced political risk
• Elimination or reduction of the risk that the company's licence to operate will be
revoked, including:
- The 'legal' licence to operate - granted by government regulators
- The 'local' licence to operate - in the form of local community acceptance of (or lack of
opposition to) the company
- The 'global' licence to operate - in the form of acceptance of the company's activities
by international civil society (or lack of opposition). This is largely determined by the
company's overall reputation and can be jeopardized due to perceived poor
environmental and social performance
• Minimising fines and penalties due to legal liabilities
For companies sponsoring Mayflower initiatives especially those of Health, Education, Empowerment and Enviromental development we anticipate a strong potential reduced corporate risk.
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