Advantages:
1. Better strategy of company.
Through the environmental risk management, we are going to have a better understanding on the environment, which may make have a better decision making on company strategy. Usually, if we know a place which may suffer from earthquake or tsunami frequently, we may not build or open some department on that place in order to reduce risk. If we have better understand or information for environmental risk, we can avoid some risk by locating the facilities at best place. So, risk is reduced and better business plan can be run as we have better information.
2. Reduce the money and life loss bring by environmental risk as better preparation can be made
Environmental risk management is a process which identify risk. If the financial risk management is done by government, the government then can provide better risk treatment for public. For example, the government can build water defenses in order to avoid or reduce the damage for tsunami. In Japan, there are usually some water defenses for the coastal city. As the environmental risk management identify risk and possible solution , it makes government bring out a more effective risk treatment for public. Through those water defenses, anti-earthquake house, or more warning system, the loss of environmental risk is reduced as people can better prepare for it.
3. Increase the rate of recovery after suffering the environmental risk.
The risk management process also give us information about the expected loss of a risk. For example, we may know the percentage of building destroyed in a city which suffer big disaster. Through the calculation, we are able to know how much resources is needed for rebuild, or which type of resource is needed for the recovery. It is possible for us to estimate that through the historical data. Moreover, by environmental risk management, we can