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Risk Management in Green Corporate Strategies

Risk Management in Green Corporate Strategies
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Copyright: 2015
Pages: 22
Source title: Green Accounting Initiatives and Strategies for Sustainable Development
Source Author(s)/Editor(s): Chirața Caraiani (Bucharest University of Economic Studies, Romania), Camelia I. Lungu (Bucharest University of Economic Studies, Romania), Cornelia Dascălu (Bucharest University of Economic Studies, Romania) and Florian Colceag (Bucharest University of Economic Studies, Romania)
DOI: 10.4018/978-1-4666-8720-2.ch008


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The risk is almost always a major variable in a corporate decision-making. However, few can predict with any precision the future. Nevertheless, managers that ignore it are in a real threat. Relevant social and environmental risks and potential impacts should be considered in the process of sustainability policies implementation. This chapter presents a literature review of existing risks outlined by the main reporting frameworks. It debates the influence of social and environmental approach in corporate reporting models. Further, the chapter develops an analysis of specific requirements regarding risks and uncertainties reported into the financial statements according to different financial reporting standards and their connection to social and environmental information that an entity should disclose. The focus of this chapter is on fundamental research that is related to inductive accounting theory and uses scientific methods for identification of corporate reporting theoretical difficulties that could impact the practice in economic entities.

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