The Seveso Directives and Their Application to Enterprise Risk Management

Abstract

Enterprise Risk Management is a relatively new concept which has emerged as a new paradigm for managing the portfolio of risks that face organizations. In this paper we explain what enterprise risk management is, how it differs from traditional risk management, what new skills are involved in this process and what advantages and opportunities this approach offers compared to prior techniques. Additionally, a relation with the Seveso Directives as a tool to manage risk is also provided. We conclude that Seveso Directives are an effective mechanism to achieve ERM objectives. Yet, this will only be accomplished by using Seveso activity as an improvement process rather than a compliance focused activity. Indeed, if applied with an eye beyond pure compliance, Seveso reports can deliver significant business opportunity.