Analyzing risks related to environmental liabilities, combined with an environmental governance policy, is one of the main indicators of corporate performance and reputation for investors today.
Environmental Liabilities
Historically, operational practices and accidents have created liabilities that require significant investment for their management and resolution. A strategic approach is crucial to ensure financial resources are allocated effectively. Additionally, all liabilities must be reported appropriately and continuously, which requires the use of robust financial projection techniques, such as Monte Carlo Simulation. This study demonstrates the application of a combined strategic and probabilistic approach to uncertainty management, evaluating the company's financial risk profile and verifying internal projections provided by current management. The results show that, under an optimized strategic approach, the costs required for liability management in the study area can be reduced by approximately 50%. Furthermore, the financial projection of the selected strategy can be used for proper disclosure of the company's liabilities.Read the full study on the Scientific Research Publishing website or download in PDF.
