Regulatory Compliance, Environmental Risk Management, and Long Term Business Strategies - Essay Example

Regulatory compliance,For example introduction of new environmental regulation both national and international, forces business to improve their environmental performance, which often threaten businesses profitability due to unexpected cost, and if some businesses fail to comply with these regulations they faces penalties, and other stick regulatory problems and in short there is threat to their long term sustainability, so organization need to be serious while dealing with such regulatory issues, which are not often taken serious by most companies and at last faces huge financial liabilities Environmental Risk management,Companies operating in Europe has entered into a new era of environmental risk management with regard to prevention and remedy of environmental damage as per a recent survey by Harvard Business Review Analytic services 60% of the companies are now concerned about the environmental risk and are serious about it, therefor lglo Group should conduct a complete study that this new investment should not bring such threats for which company may bear regulatory obligations that effect its profitability and bring long term sustainability of company into question, (sustainable, 2015)Long Term Business Strategies,As for as long term business strategies are concerned lglo group need to be proactive regarding its strategic plans of either new installation or introduction of new ways power resources, that either all these activities have any environmental effect and if they have then are there any breach of regulation with regard to environmental regulation, because if such new changes affect these environmental regulations then it may harm companies long term sustainability.

As for as this new investment is considered for alternate energy source the projected cash inflows are quite good that show steady growth from scratch to million YearsY.0Y.1Y.2Y.3Y.4Y.5Net returns-102.92.52.7 33.20 The above-projected returns show the economic viability of this project, but stakeholders attached to this project need to evaluate, as with this development they would be affected.