Social Risk Assessment

A Social Risk Assessment is a structured evaluation of the social risks associated with an organisation's operations, projects, or investments — examining the potential for adverse impacts on workers, communities, and other affected stakeholders and assessing the adequacy of existing management systems to identify, prevent, and mitigate those risks. Social risks may include community opposition to operations, impacts on livelihoods and land use, resettlement and displacement, health and safety impacts on communities, cultural heritage impacts, labour rights violations, and reputational risks arising from social performance failures.

The assessment evaluates the likelihood and severity of each risk category in the specific operational and geographic context — and identifies the management measures needed to reduce risk to acceptable levels. It is used in investment appraisal, project planning, ESG due diligence, and ongoing social performance management — and is a standard component of assessments conducted under IFC Performance Standards, World Bank Environmental and Social Framework, and other internationally recognised E&S frameworks.