ESG Risk

ESG risk refers to Environmental, Social, and Governance factors that can affect a vendor's operational continuity, including climate-related disruptions, geopolitical instability, labor disputes, and governance failures. ESG risk is increasingly incorporated into third-party risk assessments alongside cybersecurity posture. Black Kite incorporates ESG risk data into its Business Interruption Factor Analysis of Information Risk (FAIR) scenario to model non-cyber disruption factors alongside technical cyber risk.