Does size really matter?

At large companies do senior managers and the boards really know whether risks throughout their organizations, supply chains and distribution channels are fully identified and contained?

The recent troubles at Toyota, Massey Energy, Boeing (787 program delays), BP (Transocean, Ltd.), Goldman Sachs and others suggest that senior management and the board may not have the infrastructure in place to adequately identify, analyze, determine, contain and fully disclose risks.

BP Chief Executive Officer Tony Hayward’s initial reaction to the explosion on the Transocean rig in the Gulf was reportedly one of “what did we do to deserve this,” which suggests that he was either relying on luck to keep his promise to focus on safety “like a laser,” or BP lacks the infrastructure to identify and contain risks.

To identify risks you have to go directly to the source.  A new and innovative online information service (http://www.zethics.com) provides corporations, public and private, the tools to identify risks at the source.

Providing employees a structured process to disclose information about the company’s fundamental strengths and weaknesses is an internal audit best practice, and provides internal auditors the opportunity to analyze and determine the level of risk while providing management at all levels of the organization the opportunity to contain and fully disclose risks.

By disclosing risk information directly to stakeholders, the online forum allows shareowners and investors the opportunity to actively engage companies within their equity investment portfolios to accomplish responsible ownership goals and better position their portfolios to achieve long-term sustainable risk adjusted returns.

zEthics offers top management and the board a unique opportunity to gain investor confidence and trust by proving to shareowners, regulators and the public that risks have been identified, contained and fully disclosed.

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About zethics
CEO and founder of zEthics, Inc. Thirty years of experience with finance and accounting background in public private sectors.

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