Question

What is social environment in risk management?

Answer 1

Explanation:

Environmental and social risk to a financial institution (FI) stems from the environmental and social issues that are related to a client's/investee's operations. ... In most cases, a client/investee has control over the E&S issues associated with the operation and can take the necessary steps to mitigate these risks.

Answer 2

Answer:

A Environmental and Social Management System describes the process by which environmental and social risks are considered at each stage of transaction appraisal and monitoring and effectively integrates environmental and social risk management into a financial institution's existing risk management framework.