The Operational Sustainability Risk Management capability enables you to assess and evaluate operational sustainability risks for businesses. This capability is an integration of Operational Sustainability Management with Advanced risk assessment. To use the risk assessment feature, you must install and activate the sn_esg_risk_mgmt plugin.

The Advanced risk assessment feature enables you to integrate risk assessment as part of your overall decision-making process.

Risk assessment is of two types: Quantitative and qualitative. Qualitative risk assessments rely on the assessor's perceptions of the probability and impact of a risk. If the method is purely qualitative, then the ratings are based on the list values such as high, medium, or low. In this case, the risk scores do not roll up. Because this method has minimal mathematical dependency, qualitative risk assessment is easy and quick to perform. This method also enables an organization to take advantage of the assessor's knowledge of the process or asset that is being assessed. Users who are new to risk assessments usually use qualitative assessment. A quantitative risk assessment focuses on data that is fact-based, measurable, and highly mathematical. In a quantitative risk rating that uses advanced simulation techniques, the risk is quantified in purely numerical terms.

The Operational Sustainability Risk Management application provides both types of risk assessments and is employed for assessing both entities and material topics. Object-based assessments focus on material topics, while risk-based assessments are applied to entities. The resulting risk assessment scores are then aggregated for risk-based assessments. Object-based assessment allows for evaluating risks on ServiceNow records or objects even in the absence of a comprehensive GRC setup for entities, risk statements, controls, and so on. An example of object assessment involves assessing change management or assessing a citation. For a more in-depth exploration of Advanced risk assessments, refer to the documentation.

To learn about the roles are installed with the sn_esg_risk_mgmt plugin, refer to Components installed with Operational Sustainability Management (formerly ESG Management).