Ethics and risk management
Ethics are moral principles that drive an employee’s judgment to perform daily activities and define socially acceptable behavior. Often, risk is impacted by professional ethics. It is easy to understand that an organization with poor ethical standards may be more susceptible to fraud or theft. Each organization has its own measures of maintaining ethical values and culture. For example, some organizations allow employees to receive gifts from clients and suppliers, but this is not acceptable at all for other organizations.
The risk of an employee violating the ethics policy of the enterprise can best be addressed by letting the senior management communicate the ethics policy to everyone and ensure that employees at all levels are appropriately trained on those policies.
Relationship between ethics and culture
Ethics and culture cannot be separated. Ethics is not a once-a-year check-the-box function, rather ethics must be inherent in an organization...