The University of Edinburgh Business School
Risk Management
Management and Ethics Contents 1 Introduction 2 Risk and Culture 3 Anticipatory Approaches 4 Resilient Approaches 5 Change Behaviour 6 Recovery 7 Risk Communication
8 Ethical Issues

5.1 Introduction Management ensures that the goals of the organisation are achieved within the resources available. It can be making decisions or ensuring appropriate measures are in place. It might be setting targets and ensuring they are achieved. In Risk Management the issues are trying to survive the inherent risk. Some individuals believe the idea is to prevent a risk occurring. In most case sadly this is not possible. In many cases the idea is to have measure to survive the risk with limited damage. That can be either through absorption of the risk, or methods in place to recover from the risks. Obviously the best approach would be to reduce the impact on the organisation of the risk. This maybe in reducing the exposure to the risk or alternative reduction in the consequences. No organisation, though, should be assumed fault risk-free. Vigilance in any organisation is important. Part of risk management is clearly making decisions. How do we deal with decision making. For example, consider your approach to buying a major item, say a CDplayer/car/house. How do you make the decision? Do you consult friends, family, magazines, sales staff? Do you buy a well-known name or location? Do you buy from a reputable shop/dealer, estate agent? These are all strategies to reduce the risk of purchase. Gaining information is a way of reducing a risk. The strategy also reduces your own personnel exposure to the risk. Comments of 'I followed their advise', 'I was sold a dud', 'It's the last time I listen to them' are all ways of distancing the individual from the decision, reducing the liability to the individual. (The most infamous