Workplace 1
Varying ways an organization can create value, looking beyond traditional profit measures of revenue and expenses; includes such areas as philanthropy, volunteerism, corporate- sponsored community programs, social change, sustainability, corporate governan
Corporate Social Responsibility (CSR)
Principle that organizations should take all steps that are reasonably possible to ensure the health, safety, and well-being of employees and protect them from foreseeable injury.
Duty of care
Metrics that provide an early signal of increasing risk exposures for an enterprise.
Key risk indicators (KRIs)
Amount of uncertainty that remains after all risk management efforts have been exhausted.
Residual risk
Ethical behavior is determined by local culture, laws, and business practices.
Cultural relativism
Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management goals.
Risk appetite
Action taken to manage a risk
Risk control
System for identifying, evaluating, and controlling actual and potential risks to an organization.
Risk management
An organization’s desired gain or acceptable loss in value.
Risk position
Tool used to gather individual assessments of various characteristics of risk (e.g., frequency of occurrence; degree of impact, loss, or gain for the organization; degree of efficacy of current controls).
Risk scorecard
Economic, social, and environmental impact metrics used to determine an organization’s success.
Triple bottom line
State of being in accordance with all national, federal, regional, and/or local laws, regulations, and/or other government authority requirements applicable to the places in which an organization operates.
Situation in which a person or organization may benefit from undue influence due to involvement in outside activities, relationships, or investments that conflict with or have an impact on the employment relationship or its outcomes.
Conflict of interest
Protocol that an organization implements when an identified risk event occurs.
Contingency plan
Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness.
Hazard
Fundamental principles apply across all cultures, without regard to local ethical norms.
Ethical universalism
The evolution of CSR which includes compliance, integration and transformation.
CSR maturity curve
Set of behavioral guidelines that an organization expects all of its directors, managers, and employees to follow to ensure appropriate moral and ethical business standards.
Ethics
Expected monetary loss for an asset due to a risk over a one-year period; calculated by multiplying single loss expectancy by annualized rate of occurrence.
Annualized loss expectancy (ALE)
Situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss.
Moral hazard
States that a fiduciary of a plan covered by the U.S. Employee Retirement Income Security Act has legal and financial obligations not to take more risks when investing employee benefit program funds than a reasonably knowledgeable, prudent investor would
Prudent person rule
Situation in which an agent (e.g., an employee) makes decisions for a principal (e.g., an employer) potentially on the basis of personal incentives that may not be aligned with the principal’s incentives.
Principal-agent problem
Expected monetary loss every time a risk occurs; calculated by multiplying asset value by exposure factor.
Single loss expectancy (SLE)
Type of liability insurance covering an organization against claims by employees, former employees, and employment candidates alleging that their legal rights in the employment relationship have been violated.
Employment practices liability insurance (EPLI)
Statement in U.S. Occupational Safety and Health Act that requires employers subject to OSHA to provide employees with a safe and healthy work environment.
General Duty Clause