What is the first step to ensure effective environmental risk management?

Identifying the most critical assets of the enterprise is essential for effective environmental risk management because it allows an organization to prioritize its efforts and focus resources on protecting what is most important. By knowing which assets—such as equipment, infrastructure, or natural resources—are vital to the operation, a company can better assess the potential risks and vulnerabilities associated with environmental factors. This step lays the groundwork for developing targeted strategies to mitigate those risks, ensuring that the organization can maintain its operations and comply with regulations while minimizing environmental impacts.

The other choices, while important components of an overall environmental management strategy, follow after identifying critical assets. Conducting employee training helps ensure that staff understands environmental policies, but it is based on an existing framework. Implementing waste disposal procedures is a tactical step that assumes risks have already been identified. Establishing a compliance team is necessary for ensuring adherence to environmental regulations, but without first identifying which assets are most critical, it would be difficult for the team to focus on the right priorities.