Environment Risk Factors Model
Environmental Risk Factors (ERFs) should refer to environmental factors that are likely to drive or influence exposure of businesses, projects and indeed any activity to diverse risks arising from dynamics in varied environments in which these projects businesses or activities operate.
A useful starting point perhaps might be the traditional PESTEL profiles
. Such profiles refer to changes in the status of each profile in the host environment and how such changes may affect expected results (strategic or otherwise). The expected results are in this case the Value At Risk (VAR) that will require protection.
Depending on the type of environment we are talking about, the nature of risk exposure and therefore impact may vary.
The decision concerned might be the need to understand what these environments are (e.g., political) and the risk factors likely to arise from dynamics in such an environment. Clearly, we can talk about many risk constructs and postulations here.