Running head: RISK ISSUE AND CRISIS MANAGEMENT
Risk, issue, and crisis management.
Risk issue and crisis management
Define risk and sustainability risks.
Risk is defined in many ways concerning the subject at hand. However, in financial
terms, risk refers to the chance that an investment or a business's real returns or gains will differ
from the expected returns (Chen, 2020). Investors before engaging in any business activity, they
all consider the risks involved in the business of their interest. Investors also consider the aspect
of risk sustainability when considering an investment opportunity. Sustainability risk refers to the
uncertainty of sustaining the development and growth of a given system due to the negative
externalities that arise from practices hence adversely influencing the value chain over a given
period (Envecologic, 2012).
The risk sustainability management entails investors aligning profits by ensuring that
the internal strategies and policies are all aiming at business profitability. The aligning of
organizations should also aim at ensuring that they adhere to the set national and global compliance
(Rouse, 2010). This is done through the minimization of the external environment factors that
harm the business processes. There should be a balance between policymakers and financiers due
to the unstable nature of the social, governance, and environmental aspects of the economy. The
volatility of the financial systems and classical economic considerations incorporate sustainability
risks. Therefore an effective risk sustainability process includes the identification of the emerging
concerns that may have an impact on the supply chain, operations, and productivity (Rous...
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