Managing Environmental Risk for Banks – BCI’s Comprehensive Approach

When it comes to navigating complex loans and managing properties with hidden environmental liabilities, Balance Consulting Inc. (BCI) is your go-to partner. With over 36 years of experience in the environmental consulting industry and a regional footprint that covers Texas, Louisiana, Arkansas, Mississippi, Alabama, Tennessee, Florida, and Georgia, BCI is well-positioned to help banks mitigate risk and make informed decisions on properties of concern. But what sets us apart, and why should banks look to us for environmental due diligence and risk management?

Top Reasons BCI Stands Out for Environmental Due Diligence in Lending:

1. Depth of Industry Knowledge and Standards Compliance BCI is not just another Phase I Environmental Site Assessment (ESA) provider. As active members of the ASTM E-50 Committee, we ensure that every assessment is aligned with the latest ASTM E1527-21 and All Appropriate Inquiries (AAI) standards, offering clarity and compliance for our clients. Our team understands the recent updates in the Phase I ESA process, such as the refined definitions of Recognized Environmental Conditions (RECs) and the inclusion of emerging contaminants as non-scope considerations. 

2. Specialized Risk Mitigation Strategies for Complex Transactions When a property’s environmental impact exceeds the loan value or when existing loans are at risk due to contamination, BCI steps in to provide strategies that protect the bank’s interests. We are adept at developing customized risk management plans, including proper environmental specialty risk insurance to limit exposure. This allows banks to continue operations and secure their investments, even in high-liability scenarios. 

3. Tailored Solutions for Known Risks For properties with identified environmental risks that may not be deal-breakers but still require careful management, BCI assists in securing the appropriate environmental insurance and regulatory compliance plans. Our comprehensive approach includes not only initial due diligence but also ongoing support, remediation oversight, and value optimization to turn challenges into manageable risks. 

4. Expertise Beyond Phase I: Valuation and Turnkey Services BCI goes beyond just Phase I assessments. We offer extensive Phase II services, asset valuation before foreclosures, and full remediation management. This turnkey approach means we don’t just identify risks — we provide solutions. Our deep experience allows us to manage cleanups and compliance, ensuring the property’s viability and regulatory standing are preserved throughout its lifecycle.

5. Helping Banks with Foreclosures and Asset Management In cases where environmental liabilities are present on foreclosed assets, BCI’s expertise in valuations and risk quantification helps banks make informed decisions on whether to hold, sell, or remediate properties. This guidance reduces uncertainty and potential losses associated with distressed assets.

Smart Due Diligence: Protect Your Bank with the Right Partner

When lending institutions partner with BCI, they gain a trusted advisor that is there not just during the site selection and transaction phases, but throughout the entire property lifecycle. Our work doesn’t end with the initial assessment — we stay engaged to help you manage and mitigate risks as new conditions arise. That’s why so many financial institutions turn to BCI for guidance on even the most complicated properties.

Find out more about how BCI can safeguard your investments and manage environmental risk at www.balanceconsultinginc.com.