Ethics in risk management practices: insights from the Italian mutual credit co-operative banks

Abstract

This paper explores the role of ethical values within Enterprise Risk Management practices. For the purpose of our analysis, we refer to the Italian mutual credit cooperative banks, as ethical banks, since they are managed according to the distinguishing principles of economic and social profitability. This paper attempts to make a contribution to existing literature, giving evidence to the role of ethics in risk management practices as a new driving value for business activities. Moreover, this study provides “lessons” for the international community, concerning the possibility for mutual credit cooperative banks to make profits not via the achievement of high financial spreads but through the creation of services for the community.