CFO-World - Risk management: is there any good choice?

Risk management: is there any good choice?

jeudi, 08 mars 2012

The role of a CFO becomes decisive when times are uncertain. Choices have to be made but it is a big issue to decide what kind of decisions have to be adopted. Often, it is considered that the problem can be solved with risk analyses, insurances, costs, etc, but risk management is more than an analysis and other points have to be taking into account. Indeed, moral and ethical decisions in particular when it is related to people, should be underlined, even privileged.

Here are exposed five ethical approaches helping executives to understand risk-management decisions in the context of ethics:
-    Utilitarian: is about to bring the greatest good for a large number of people as well as the least harm. However, it can be seen as unfavourably by many people who believe that either the actions involved.
-    People’s right: implies the fact to tell the truth and inform about the consequences of the choice made because doing the contrary could be seen as a people manipulation whereas it is their right to know.
-    Fairness or justice: this approach highlights the importance of treated people the same and in a fairly way.
-    Common good: remains that we work individually but to reach common goals and we should help each other because we can’t reach this aim alone.
-    Virtue: this ultimate point insists on the fact that facing an issue with virtue principle such as honesty, courage, compassion and integrity can also improve your personal development.

More informations thanks to : CFO.com.