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Environmental Risk Advisor:
Environmental Risk Policy - Where to Begin

Charlotte, North Carolina - The development and maintenance of an environmental policy can present a challenge for lenders and banking risk managers that do not have an internal environmental staff.  The process not only includes a determination of the types and levels of due diligence that
will be required, but also includes the delineation of roles and responsibilities for policy execution and specific procedures to
follow based on the bank's risk tolerance.

A good first step in policy development is bringing together key bank officers to discuss the major components of the policy and process. 

An essential ingredient in policy development meetings is a set of specific questions designed to address the major aspects of an environmental policy. 

These questions include the following:

1. What levels of risk will be tolerated?
2. What levels of due diligence will be considered?
3. Who will review the environmental assessments?
4. What aspects of the process should be centralized?
5. When should the bank require reliance letters?
6. Who will enforce and who can waive the policy?

Although there are many possible answers to most of these questions, ERI's environmental risk management policy development team is available to meet with your bank to discuss the pros and cons of the various options and assist you in policy development and implementation.  ERI has significant experience in addressing the specific concerns of a wide variety of key players who manage various internal banking operations, such as commercial real estate, corporate banking, business banking and special assets. This collaborative approach to policy development can lead to an efficient and streamlined environmental risk management program.

About Environmental Risk Innovations
ERI is the nation’s largest environmental risk consulting firm, specializing in the management of environmental risk for commercial lenders.  ERI’s clients include small regional banks to large banks with national footprints.  ERI develops internal environmental risk policy for commercial lenders, provides third-party review of environmental assessment reports, and conducts Records Search with Risk Assessments (RSRAs)/“desktop reviews” on commercial properties.  ERI is not a traditional environmental consulting firm that performs Phase I or Phase II Environmental Site Assessments.  As a result, ERI’s recommendations represent a truly independent, third-party opinion that conforms to the client bank’s specific risk tolerance. 

For more information on ERI's environmental consulting expertise, please contact Karen Nelson at knelson@eRiskInnovations.com or 704.548.9333.

© 2015 Environmental Risk Innovations, LLC