Environmental Liabilities Present High Risks And Management Challenges In Business Operations & Transactions

Environmental Liabilities are High Risk Liabilities

Environmental liabilities are among a number of potentially high risk liabilities facing companies engaged in commercial operations and transactions worldwide.¹ There are at least four key characteristics of environmental liabilities that individually or collectively can create a high risk to a company: (1) they involve multiple and complex variables making them difficult to identify and analyze; (2) they are long-term in nature requiring continuous monitoring and re-assessment; (3) they have a high degree of uncertainty making them difficult to quantify; and (4) they can cause significant or material adverse impacts to a company if not properly managed.