prudence

3 definitions • 5 examples

behaviour that is careful and avoids risks:

The firm was commended for its financial prudence.

Everyone agreed that panic wasn't called for, prudence was.

the state of being careful in the way you make decisions or spend money so that you avoid unnecessary risks:

The challenge we are trying to meet is balancing financial prudence with the need for success.

economic/fiscal prudence

the principle of not showing assets or profits to be greater than they might be, or losses to be smaller than they might be, in a company's accounts:

The prudence principle states that businesses should report their assets and liabilities in the most unfavorable position.