For any project or operation in the extractive, construction, and agribusiness industries, the management of social risks and impacts is an essential part of the project management process. risk and social impact management is a fundamental pillar to guarantee an ethical, responsible and sustainable operation that respects the communities and the environment, and thus, guarantee the continuity and success of the business.
In this article, we tell you in more detail what risk and impact management entails and why it is crucial for companies to adopt an appropriate approach in this area.
What does Risk and Social Impact Management mean?
The management of social risks and impacts consists of the identification, evaluation and identification, evaluation and management of the adverse effects that business activities may have on society and the environment.
This discipline goes beyond mere compliance with local regulations; it is about foreseeing and addressing potential anticipating and addressing potential impacts responsibly responsibly, and managing them before they can lead to crises.
What is the importance of applying appropriate risk and impact management?
Proper management of social risks and impacts is not only ethical, but also strategic, enabling companies to achieve a number of significant benefits, some of which are described below.
Respect and responsibility
The management of socio-environmental risks and impacts is the responsibility of projects and operations, and is the basic sign of respect for the communities living around their operations. Projects and operations must manage the impacts caused by them, as well as the cumulative and residual impacts in their areas of influence. The duration of this commitment is until such time as the impacts are no longer experienced by people and the environment, and there is no potential for recurrence.
2. Promoting innovation and competitiveness
This is because it enables companies to find sustainable solutions and remain competitive in a constantly evolving market.
3. Improve your reputation and legitimacy
Responsible risk and social impact management contributes to gaining the trust of customers, investors and the community at large.
4. Avoid financial and legal costs
Lack of attention to socio-environmental risks can lead to significant legal sanctions and financial costs. Prevention is key to avoiding these negative consequences.
5. Management of risks and social impacts to contribute to sustainable development.
A correct risk strategy contributes to sustainable development, promoting a balance between economic growth and the protection of the environment and society.
How to develop a successful social risk and impact management?
The management of socio-environmental risks and impacts requires a broad and deep knowledge of communities, the socio-political environment and socio-environmental services. communities, the socio-political environment and the socio-environmental services from which the from which the community benefits, and how these stakeholders will be affected by the project or operation.
Thus, in order to develop a successful strategy, companies must pay attention to aspects such as those described below.
- Consider socioeconomic and socioenvironmental information. Corresponds to the technical activities of the project, the effects on people, the measurement of risk, and the determination of management measures (prevention, mitigation, compensation).
- Identify vulnerable groups and their ability to recover from impacts. Requires inclusion of all potentially affected, as well as appropriate management measures for them.
- Include gender and human rights perspectives. Consider how women, men, and people from the LGTBIQ+ community will be differentially affected. Likewise, the human rights perspective should be the transversal axis of the analysis and preventive measures.
The InSight Social Approach
Our mission is clear: To offer comprehensive solutions for the management of social risks and impacts, helping our clients to ensure that their impact identification and management exercises are multidisciplinary, and that they include and integrate the different areas of the business: technical, construction, social, environmental, occupational healththrough:
- Design of strategies in line with international standards
- Analysis of the social context through perspective services.
- Identification and management of social risks and impacts
Our experience with Anglo American
InSight Social collaborated with Anglo American in exploration projects in Latin America (Ecuador, Peru and Chile), establishing a risk and impact management system that integrated social and environmental dimensions.
This collaboration improved project planning by anticipating and addressing unanticipated impacts in a timely manner.. Transparency in communicating socio-environmental impacts helped in Ecuador, for example, to manage social conflicts, building community trust through detailed information and the inclusion of the community perspective in impact management.
Do you need effective and ethical risk and social impact management for your company?
If you are looking to improve project planning, anticipate and manage unforeseen impacts efficiently, and build community trust through transparency and inclusion, do not hesitate to contact us.
At InSight Social, we are committed to helping you build a strong and sustainable business future.
