THE ETHICAL CONTEXT AS A HISTORICALLY SIGNIFICANT FACTOR OF RISK MANAGEMENT EFFICIENCY

Abstract

The purpose of this study is to identify ways to improve the effectiveness of risk management, thereby bridging the gap between the increasing needs of organisations and their current capabilities based on the study of past civilisational crises. To solve this task the main ethical factors that contributed to the success of bifurcation transitions in the past were identified through the analysis of turning points in history: the Upper Paleolithic Revolution, the Axial Age Revolution and the Industrial Revolution, using the model of minimum necessary social stability developed by the author based on the hypothesis of techno-humanitarian balance. Starting from the current position of the society on the eve of the next bifurcation transition, a comparative analysis of the ethical factors that made past successes possible with the current practice of risk management in organisations was carried out. The following factors were highlighted as priorities for the implementation in risk management practice: working together to achieve common goals, establishing and adhering to uniform rules for achieving common goals, and creating a favourable environment for the targeted use of human creative potential. As a result, a scheme has been proposed to complement current risk management practices by incorporating higher level ethical factors that promote rational goal setting, as well as involving the creative skills and efforts of lower level stakeholders in situational response. The proposed scheme can help to strengthen the impact of risk management, both for the organisations themselves and, indirectly, for society.