Author(s)

Tiago Moura, Hermann Flávio Fernandes do Nascimento^*, William Odle

Independent Researcher, NewFields, Rio de Janeiro, Brazil.

Environmental stewardship is one of the main indicators of corporate performance and reputation among investors today. However, historical operational practices and accidents have created significant environmental liabilities in the industrial sector, and now require significant investments for appropriate management and resolution. A strategic approach is imperative to assure that company’s financial resources are effectively allocated, and shareholders’ interests are protected. In addition, these liabilities must be appropriately and continuously reported, which require the use of robust forecasting techniques such as Monte Carlo Simulation. The present study results demonstrate that under an optimized strategic approach, liability management costs may be reduced in approximately 50%. In addition, the financial forecast under the selected approach may support appropriate reporting of company’s liabilities.

Business Risk Management, Strategy, Environmental Liability, Monte Carlo Simulation, Environmental Accounting

Moura, T. , do Nascimento, H. and Odle, W. (2022) Corporate Risk Strategic Management and Probabilistic Analysis Related to Environmental Liabilities: A Case Study. Journal of Environmental Protection, 13, 490-507. doi: 10.4236/jep.2022.137031.