Friday, April 25, 2008

' Providing future managers a strong foundation on business ethics would be invaluable to Indian industry.'

Good governance can be as strong a differentiator as good strategy

Living as we do in the post-Enron era, it doesn’t look like too long ago when the global energy giant went belly up, causing tsunamis in the accounting profession and the regulatory mechanisms. While Enron and WorldCom were watershed events caused by large-scale failure of business ethics, the ongoing sub-prime crisis seems to be a master class in failure of risk management, feels Mr Ramesh Venkataraman, Managing Director, Asia-Pacific, CurAlea ( www.curalea.com ), an international management consulting firm specialising in the areas of corporate governance, business ethics and risk management.
“How would you explain large global banks and investment firms not having anticipated the risks, when they should have been aware that mortgage lenders were chasing borrowers with lending practices that were too aggressive to be sustainable?” he asks during a recent lunch-hour interaction at Business Line.

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