Executive Forum

By Jackson, Freida L. | Risk Management, September 1995 | Go to article overview

Executive Forum


Jackson, Freida L., Risk Management


THE CLEAN AIR ACT (CAA), CLEAN Water Act (CWA), Resource Conservation and Recovery Act (RCRA) and the Superfund Amendments and Reauthorization Act (SARA) are some of the environmental regulations at the Federal level. In addition, there are related city, county and state regulations.

All of these environmental regulations can put a tremendous financial burden on the companies and industries that must comply with them. Noncompliance can result in enormous fines, criminal penalties and even jail terms for certain corporate employees.

There are considerable questions about which environmental changes will take place under the Republican Congress. If they have their way, business and industry, and thus risk managers, may find some relief from the more onerous governmental requirements. It is imprudent, however, to assume this will happen, and at least for the time being, the legislation listed above will be important to large and small companies alike.

So how can risk managers help their companies manage environmental legislation? First, risk managers must educate themselves on the myriad aspects of environmental exposures. It does a risk manager no good to be standing knee-deep in an environmental hazard and to fail to recognize it. …

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