Environment risk arises when there are external forces that can affect a company’s performance or make its choices regarding its strategies, operations, customer and supplier relationships, organizational structure, or financing obsolete or ineffective. These forces are outside management’s ability to control. 

The Protiviti Risk Model is a comprehensive organizing framework for defining and understanding potential business risks and creating and managing the organization’s dynamic risk universe. Boards of directors and management can use this tool to assess and monitor strategic risks impacting the organization. The model focuses on three different types of risks: environment risk, process risk and information for decision-making risk.