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35 Importance of corporate reputation > CSR and reputational risk - Pg. 372

372 Risk Assurance and Reporting starting point. Many risk assessment workshops consider corporate social responsi- bility and social, ethical and environmental considerations within the topics that are evaluated. When assessing the CSR agenda, risk managers should take the opportunity to bring risk management tools and techniques to a broader agenda. The risk manage- ment approach of risk assessment, identification of control measures and auditing of compliance is an approach that can be transferred to corporate social responsibi- lity and, indeed, to the broader corporate governance agenda. CsR and reputational risk Most organizations consider CSR to be a reputational issue and see the component parts of CSR as hazard risks. Such organizations will consider that they need to re- form their processes and procedures in order to comply with these requirements. This may well be an accurate starting point for many organizations. However, as Figure 4.2 illustrates, what starts off as a hazard risk can develop into a control risk and eventually into an opportunity. As with other areas of risk management, organizations should seek to develop their level of sophistication in relation to CSR. Having got to the stage of complying with the CSR obligations, organizations should then look at the opportunities that