The theme “Ethics and Risk Management” signifies that each of these two disciplines—risk management and ethics—depends on the other. Good risk management requires good ethics; and good ethics requires good risk management. This implies that, from a positive perspective:
- First, for an organization/company to manage its risks well, everyone who represents that organization/company must practice good ethics.
- Second, for an organization/company to act ethically, everyone who represents that organization/company must manage risk well.
And, conversely, from a negative perspective:
- First, an organization/company that permits or encourages unethical actions by anyone who represents it is not practicing good risk management.
- Second, an organization/company that permits or encourages anyone who represents it to manage its risks poorly is acting unethically.
Risk management is a process for making and carrying out decisions designed to minimize the adverse effects of accidental or business losses on an organization/company by reducing the number or size of these losses or by cost effectively financing recovery from any such losses.
The Event owners/management
Ethics means not acting wrongly against a person, property or society; protecting all people’s rights: and not damaging a company or a person’s name and/or reputation by per example making public statements that are false and malicious. Unethical behaviour within an organization is poor management of that organization. The event management’s legal and ethical responsibility is to address all risks. For example: if health and safety problems are likely or perceived to be a risk, insurance should be taken out to cover this risk.
This also implies identifying all the risks that could have a critical impact upon the viability of the event/employees if they occur, and developing contingency plans for those risks; not avoiding them just, for example, to save money. Each workplace should have specific health and safety policies in place to avoid occupational health and safety problems. Employees of a company are very important and it is the employer’s ethical responsibility to take care of their health and safety.
For any given risk, event management can choose to accept the risk based on the relatively low value of the asset, the relatively low frequency of occurrence, and the relatively low impact on the business. Conversely, management may choose to mitigate the risk by selecting and implementing appropriate control measures to reduce the risk (risk management). In some cases, the risk can be transferred to another business by buying insurance or out-sourcing to another business. Laws govern every facet of our lives. Employers have specific legal responsibilities that regulate their particular profession.
Adhering to legal regulations is vital for the health, safety and well being of all employees, and the protection of the employer. Legal and ethical responsibilities in Switzerland always include the safety of people. There are many laws here to protect the employer and the employees. To organize an event, one has to get all the required licenses and permits, without which the police will shut it down. But it is also the event management’s responsibility to ensure that everybody is following safety guidelines and that the event flows smoothly.
The most important is that no harm occurs to individuals. The facility owners: Facility owners’ ethical responsibilities are to follow all legal regulations, to fulfill contract requirements for health and safety issues. The rented facility has to have been approved by the local government’s inspectors. All facilities have to offer a specific standard of care, set up by the Swiss government. The facility owner’s responsibility is to ensure that the new rental company or private person knows and reads the general terms and conditions for enting out the facility. They also have to communicate which aspects are covered by the facility insurance and which aspects the rental person/company has to insure themselves. Injury to persons or property are the usual risks managed through the purchase of insurance. Today’s facility managers must be knowledgeable in areas ranging from environmental science to finance; human resources to security; and risk management to information technology. Managing risk through insurance is yet another skill set required of facility management.
