Managing Environmental and Social Risks

Risks arising from environmental problems or social discontent surrounding a project can be extremely costly in terms of delays and stoppages, negative publicity, threats to operating license, and significant unforeseen expenditures. At the same time, reputational damage to a company can far exceed the immediate cost impacts of a single project.

Companies that proactively seek to reduce and manage these risks can benefit from improved business performance over time. Through more than 50 world-class specialists, IFC integrates risk management throughout its Investment Cycle and helps companies spot and limit risks upfront in many ways:

• Environmental and social due diligence (including risk analysis)
• Project-specific advice to meet IFC Environmental and Social Standards
• Project-specific business risk management services
• Guidance and training for commercial banks, private equity funds and other financial intermediaries
• Annual monitoring and continuous improvement of environmental, social, and business performance
• Assurance to shareholders and stakeholders

Learn about the IFC Investment Cycle... [PDF]