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Glossary · ESG

Social Risk Assessment

The evaluation of potential adverse impacts and opportunities related to labor practices, human rights, community relations, and social equity.

Full definition
Social Risk Assessment identifies exposure to labor disputes, human rights violations, community opposition, diversity issues, and workforce safety concerns that can affect operations, reputation, and license-to-operate. Assessment methodologies include stakeholder engagement, human rights due diligence, labor audits, and community impact studies. Organizations integrate social risk into investment decisions, supplier selection, and site development. A mining company conducted social risk assessment before expanding operations, identifying potential conflict with indigenous land rights and water access concerns, leading to a benefit-sharing agreement, employment commitments, and water management protocols that secured community support and avoided costly project delays.
ESGsocial issuesstakeholdershuman rights
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