Environmental risk is the melange of external risks to the company, its customers and suppliers. It is
the most difficult to predict of all vulnerabilities as it spans weather, business environment, acts of
war and so on. Here the obligation on the company is to identify the impacts that could arise based on known hazards from the short term, e.g. exposure to power failure, through to severe business
disruption due to strikes and natural disasters. Environmental risks are likely to impact on both supply and demand and an attempt to identify such events should extend to these communities.