External Materiality and ESG: What You Should Be Looking For

Material risk management, or materiality, is a concept that is growing in importance as companies try to determine the material threats to their business.

As a business leader thinking about operational risk, do you consider internal risks first? For example, when considering operational risk, are regulatory compliance, talent retention or catastrophic asset failures resulting in production shutdowns top of mind? When you consider external risks, do you land on those that are most obvious, such as shifts in regulatory burdens, currency fluctuations, competitive threats, etc.…? (The list goes on and on.)

Like most leaders, you probably pay attention to ongoing issues, while staying as up to date as possible about evolving challenges and threats to the business so you aren’t caught off guard.

The problem with this approach is that it leaves an organization in an inherently vulnerable position. It’s hard to truly stay up to date. External risks are … Read more...