Question

Describe the factors that influence reputation. Then, define risk and describe what makes up sustainability risks. What risks has your organization taken lately? How did those risks affect the organization’s reputation? If you do not belong to an organization, select a company in the Kingdom of Saudi Arabia and answer this question based on that organization.

Answer 1

All of us have reputation that, to varying degrees, follow us around, impacting our  ability to do our jobs and build trust with others. Factor such as honesty, maintaining commitment and generating results aid in the development of positive reputation. However when we missteps our reputation suffers setback.

Risk is the probability or threat of damage, injury, liability, loss or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemitive action. But sustainability risk is a business strategy that aligns profit goals with a company's environmental policies. The goal of sustainability risk is to make this alignment efficient enough to sustain and grow a business while preserving the environment or in the other word you can say that sustanibility risk refers to the uncertainty in being able to sustain the growth of a given system because certain practices may have negative externalities which result in the delapidation of value chain of the system over a period of time or impact other related system.

The starkest example of that illustrate this scenario is rising sustanibility risk across sectors of an economy to varying degres because of climate change.Whether or not climate change is leading to significant disorder. This climate change have well established the adverse impacts that range from rising temperature to increase occurance of extreme floods and drought.This climatic disturbance have directly impacting the profitability of of corporations. for example flood is the most important coal basins of the world, Queenland Australia led to an estimated loss of $6 billion according to Forbes and upto 40% of global coke supply was impacted and supply disruption of coke price rises by 30% this led to the delay of production of steel within three weeks of floods.

Sustanibility risk assessment  techniques are methodologies are being designed and used by companies at an ever increasing rate. It should help them quantify the risk so that a clear picture of expected impact of climate change and unsustainable practices emerge.