A systematic process of evaluating risk in a company’s current or future operations, supply chains, and investments.

• In the context of the Accountability Framework, this term refers to the assessment of risk of non-compliance with company commitments, policies, or other obligations related to the Accountability Framework’s scope, including adverse impacts to internationally recognised human rights. This is different from the use of the term in a general business context, where it refers to the assessment of financial risks and the drivers of such risk (eg, legal risk, credit risk, reputation risk, and others). Risk of adverse social and environmental impacts, including non-compliance with company commitments, policies, or other obligations, can be an important element of broader business risk.