Global warming has become a highly concerned issue in enterprise risk management (ERM) and corporate sustainability practices in the business management. Enterprise risk management and corporate sustainability are directly linked with climate change and global warming. Global warming-based results are affected by business risks and their handling priorities. Because risks are verified and increased by global warming, they impact both our world and the business. Also, global warming-based impacts can have effect on corporate sustainability. In this concept, global warming should be considered as part of enterprise risk management issue and sustainability practices. The consequences of the global warming-based risks are threats for sustainability of our world. In this study, enterprise risk management-based framework has been developed to support managing-related risks and promote corporate sustainability risk efforts in the business management. Implementation of such models and getting results takes as much as 5 or 6 years in optimum period. For this reason, basic framework is given in this study. Further work is planned for implementation of this model in specific business sector as a real world situation. Also, this model based on 'enterprise risk model to corporate sustainability model' has been developed by Kucuk Yilmaz and Yilmaz (2008).
Global warming is threatening sustainability of the world. Impacts of global warming create important negative results to social, economic, and environmental systems.
In the context of global warming factor assessment, uncertainty arises because we do not know exactly the magnitude of the global warming and its associated impacts, and in some subjects it is not clear. Also, uncertainty may arise because decision makers do not know the threshold at which global warming impacts have a particular level of consequence for organization.
Global warming/climate change risks are developing into one of the critical risk areas of the 21st century. These risks are part of a larger set of sustainability
I. Dincer et al. (eds.), Global Warming, Green Energy and Technology,
DOI 10.1007/978-1-4419-1017-2_27, © Springer Science+Business Media, LLC 2010
risks, which emanate from the environmental and corporate social responsibility areas. Sustainability risks need to be incorporated into corporate Enterprise Risk Management (ERM) systems (Anderson, 2007).
During the last decade, concerns have grown continuously in anthropogenic GHGs and the associated risks of climate change. Enterprises, as a major contributor to global GHGs emissions, will need to play a significant role in helping countries to achieve the goal of reduction under the Kyoto Protocol. The enterprise risk is fundamental to firms and is inherent in their operations. This type of risk sometimes is identified as operating risk that can be technological, distributional, or informational. And enterprises can use operating risks as resource of competitive advantages (Chen et al., 2007).
While risk management and sustainability risks are not necessarily new, it is only recently that their impacts are being felt by businesses. Environmental and social risk costs, which for years were externalized, are increasingly internalized to the firm (Anderson, 2007).
In recent years, global warming and its consequences have become a key international issue for both industrialized and developing countries. The global warming risk looks to be a serious threat to our species and all living beings on the earth. Its consequences are numerous and varied. As is obvious by its name, global warming is a global phenomenon with a number of effects on the global level. Global warming has various effects, ranging from the effects to the atmosphere to the economical, environmental as well as the health of human beings. There are also a number of effects to the nature and atmosphere. One of the most serious effects of global warming that humans have to think about is the effects on the health of individuals, nations, and therefore civilizations (D'Silva, 2008).
This chapter presents a suggestion to integrating global warming risk and its impacts on risk management and other strategic planning activities in public and private sector organizations. The study is aimed to support current risk management efforts about sustainability and global warming in the world. This study is also aimed to contribute to risk management literature regarding the sustainable development and global warming subjects. It also includes four main sections. The following section describes enterprise risk management and related strategies. In the third section, the methodology of research: risk management process is given. Overall conclusion is given in the last section.
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Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.