Ethical Risk

What is Ethical Risk?

Ethical Risk refers to the possibility of an organization facing harm due to unethical behavior, decisions, or practices—whether intentional or accidental. This includes violations of company values, codes of conduct, regulatory standards, or societal norms, and it can lead to reputational damage, legal consequences, and loss of stakeholder trust.

Examples of Ethical Risk

  • Bribery and corruption

  • Discrimination or harassment

  • Misleading advertising or financial reporting

  • Conflicts of interest

  • Unfair labor practices

Impacts of Ethical Risk

  • Loss of brand credibility and public trust

  • Employee disengagement or turnover

  • Lawsuits, fines, and regulatory penalties

  • Investor withdrawal or loss of funding

  • Customer boycotts and market share decline

How SysRisk Helps Manage Ethical Risk

SysRisk enables organizations to effectively address ethical risk through:

Policy monitoring and compliance tracking
Ethical risk assessments across departments
Incident reporting and response management
Training and awareness programs integration
Real-time dashboards for transparency and accountability

 

By leveraging SysRisk, companies can build a strong ethical foundation, reduce vulnerabilities, and promote a culture of integrity that supports long-term success.

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