Ethics

What we have the right to do and what is right are really two very different things. A simple example could be that we have every right to do what it takes for our business to flourish, but the techniques used may not necessarily be all pure and honest. (Lennon, 2008)

Lets face it, the world of business and exchange is very tricky. Ethics and morals are also connected to risk management. Not only do we have to think of the hazards that might happen, we must also think in terms of the clients. A good risk management plan does not only provide solutions to foreseen problems, it also prevents any losses from happening.

In terms of managing a hotel, for example, ethics and moral can be equipped with risk management. In building the hotel alone, a lot of money is already used. Especially in terms of insurance when it comes to the materials to be used. To save money, most companies use cheaper materials for the interior. We can easily publicize the hotel as a 5-star hotel and earn fast money. The risk is that the clients might find out and when this happens, we lose clients. We are forced to look for more clients, instead of keeping our old clients. In addition to this, the trust of the public has faltered. Risk management is a continuous process it doesnt just stop after the launching of the project. (Wallace, 1999-2007)

Real estate itself is a big risk, because it requires a lot of money. Satisfying the client is not an easy task when it comes to real estate. (Australia, 2005) There is a surplus of legislation when it comes to this sort of business. This is vey similar to the situation with hotels. In building homes, cheaper materials can be used for things like the walls and ceilings. There are certain cheats which are often used in construction. The risk is also when the clients find out through earthquakes or other disasters which can show them that the materials are not what have been advertised. Things like these have to be foreseen through risk management. What if the buyer files a lawsuit This is where morals come in, which are also connected to the corporations core values, which may be ruined once the public discovers the incident. As stated in the first paragraph, we have the right to do anything for the business to flourish, but this does not mean that the techniques are pure and honest.

Since the company also produces, exports, and imports wine and spirits, let us take this into consideration. In the past, people only used crushed grapes to make wine, but as time passed, the people realized that through technology and intervention, they can design different kinds of wine. (Cal Wineries, 2007) It is also common knowledge that the older wine is, the more expensive it is. Now, in relation to ethics and morals, it can easily be said that the wine is older than it really is. Most clients will take your words for it at once, and this is a classic example of doing everything to make the business flourish, but not using pure techniques. There is also such a thing as not lying to the customer, but not telling the truth either. It is a simple play of words.

Risk management takes into consideration what hazards might occur, and how to solve them if they come, but better yet, how to prevent them. It is normal to experience problems in businesses, so we need to be ready for anything. In the situations given, we should make critical decisions. The decision must be on which the company will lose the least amount or either money and clients. It is a tough decision, but with good risk assessment plans and good management, risks can be minimized to get the best results.