Elm helps clients in identifying and evaluating business exposures that stem from the environmental issues they face. Elm’s projects of this type are conducted within the risk management – rather than engineering or compliance – context. We review the efficacy and integration of existing business, risk, operations and environmental management systems that relate to the client’s environmental risk profile. For instance, contractual indemnifications and insurance specifications are reviewed for potential gaps relative to actual operating conditions.
Potential risk scenarios are identified and reviewed without incorporating impact or mitigation judgments. Our experience shows that risks are best identified assuming there are no controls in place, or that controls will fail in some manner. Doing so provides a more robust risk assessment and allows clients to better evaluate whether existing controls/procedures are current, effective, and/or applicable.
Generally, the results are presented by using a two-dimensional matrix (frequency and severity) with definitions that are established using client-defined risk management benchmarks. Reflecting the risks in a frequency/severity context allows clients to better identify appropriate risk reduction/mitigation solutions.