By Gina Ekstam for AssuredPartners
While not exclusive to agribusiness, environmental exposures, such as air pollution and contaminated water and soil, must be confronted. One tool that is particularly helpful in assessing risk is called a risk profile. Typically used to identify strategies and procedures for administrative risks, a risk profile can be expanded to address areas of environmental liability.
Referred to as an environmental risk profile (ERP), it systematically helps operators identify and manage environmental risk. A completed ERP can show how environmental exposure impacts the operation and the risk management strategies available.
Environmental exposures can be grouped into three major categories: operations, transportation, and disposal liabilities. From groundwater contamination from spills or leaks, to poor air quality from manure digesters, crop stubble burning, hog or poultry confinement, to improper storage or handling of raw materials or chemicals, understanding the risks is crucial to reducing and managing them.
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