Risk Management

User Generated


Business Finance

Question Description

What is your definition of socially responsible risk management? How would you go about enacting a more socially responsible risk management strategy in your current workplace? 

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Explanation & Answer

Social responsibility and risk management are very closely related. In many ways, social responsibility is itself a form of risk management as it maintains the goodwill needed to avoid costly political and legal setbacks. A strong adherence to social responsibility and risk management can create many opportunities for a business.
Managers are socially responsible through risk management in whatever business or business unit they oversee.  Social responsibility and risk management are most closely intertwined from the manager's perspective because the manager (unlike the shareholder or local community) knows perfectly well the demands of the owners and those of the community. Managers are therefore responsible for optimizing financial growth without jeopardizing the company's future through socially irresponsible actions.

Enovnannm A (570)
Cornell University

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