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Risk Prevention By Self- Diagnosis Before Thinking Of Anything Else

Author

Listed:
  • François Ecoto

    (ISEOR - Institut de Socio-économie des Entreprises et des ORganisations - Institut de socio-économie des entreprises et des organisations)

Abstract

The aim of diagnosis (Batch L. 2000, Marion A. 1993) is to identify the strengths and weaknesses of a company so as to : 1) Identify risk areas; disadvantages; 2) Confirm the existence of added values in concrete or intangible elements; 3) Seek out potential value losses. Self-diagnosis, therefore, implies avoiding mediation, or consigning diagnosis to a third party qualified in this field (accountant, internal or external auditor, consultant etc.), preferring to do the work oneself. This choice can be made for any of several reasons: a) to save money in difficult times; b) the head of the company may feel competent as he has had training, and has sufficient time and the necessary experience; c) he has no confidence in third parties (advisors, experts or auditors of various kinds); d) he is afraid the work may be badly or carelessly done; e) he has already had a bad experience, even a shock, when employing a specialist company; f) he may wish to keep certain information confidential, bearing in mind the competition, and the unscrupulous behaviour of certain professionals or employees in specialized firms, some of whom would not hesitate to sell information for money (corruption in business is not unknown); g) he may wish to economize on the costs incurred by subcontracting this work, and also to remain independent.

Suggested Citation

  • François Ecoto, 2009. "Risk Prevention By Self- Diagnosis Before Thinking Of Anything Else," Post-Print halshs-00763509, HAL.
    • Handle: RePEc:hal:journl:halshs-00763509
    as

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