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Human rights risks refer to the potential adverse impacts that a company can have on the enjoyment of human rights.[117] For financial institutions, we define human rights risk as the risk of losses to the financial institution from violation of human rights, either by the financial institution itself or by its customers.

The United Nations Environment Programme (UNEP) Finance Initiative has published a guidance tool to assist financial institutions identifying potential human rights risks arising from the activities of corporate customers/clients.[118] These risks depend on a company’s business activities, products and services, its countries of operation, business relationships and the appropriateness of its existing prevention and mitigating measures.