From Risk Appetite to Values at Risk: Exploring the Ethical Turn in Risk Management

Details

Serval ID
serval:BIB_C15D17909F56
Type
Inproceedings: an article in a conference proceedings.
Collection
Publications
Institution
Title
From Risk Appetite to Values at Risk: Exploring the Ethical Turn in Risk Management
Title of the conference
GLOBAL Management Accounting Research Symposium
Author(s)
Mikes A.
Publication state
In Press
Language
english
Abstract
In the wake of the 2007–2009 financial crisis and subsequent financial services scandals, there are numerous normative and regulatory demands on risk managers to assess the ethicality of corporate plans and actions. An ethical turn in risk management looms, focusing the attention of boards and executive teams on a plurality of ValueS at Risk, rather than on a single or composite—and primarily financial—Value at Risk. The controller’s question of what risks an organisation is running is increasingly seen as intertwined with the ethical question of whose risks an organisation is managing—or even taking into account—a discussion that needs to be addressed in what Power (AOS, 2009) conceptualised as the “risk appetising process”. Based on a longitudinal case study conducted at a Canadian electric utility, I show empirical evidence that some risk managers have created tools and processes that tangibly link risk management and business ethics. Drawing on the literature of behavioural ethics, I outline a conceptual framework that also links risk management and business ethics. I conclude that an ethical turn in risk management will require the ability to bring the ethical dimension to the fore by making ValueS at Risk graphically visible as part of strategic decision-making and formal control processes.
Create date
05/04/2018 9:25
Last modification date
21/08/2019 6:11
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