🌟 Word of the Day 17 Ṣafar 1447 AH – August 11, 2025 ‘Prudence’🌟

Coach Ward

Kuala Lumpur, Malaysia

3–4 min read

Welcome back to our Business English Word of the Day series. Today’s term is prudence: a quality that every leader, entrepreneur, and professional needs when making decisions. In business, prudence is about more than just “playing it safe.” It’s the ability to act wisely, anticipate risks, and make decisions that balance opportunity with responsibility.

In Islamic business ethics, prudence aligns with hikmah (wisdom) and tafakkur (thoughtful reflection), ensuring that decisions are not only profitable but also just, ethical, and pleasing to Allah.

📖 What Does “Prudence” Mean?

Prudence is the quality of being careful, wise, and exercising good judgment when making decisions or taking action.

Examples:

• “The CEO showed prudence by building cash reserves before market volatility hit.”

• “In negotiations, prudence means knowing when to speak, and when to listen.”

🧬 Word Origin: Where Does “Prudence” Come From?

The word comes from the Latin prudentia, meaning “foresight” or “wisdom in practical affairs.” In medieval philosophy, prudence was one of the four cardinal virtues, valued as the guiding virtue that helps determine what is truly good.

🧠 Prudence in a Business Context

Prudence is essential when…

• Assessing Risk: Carefully evaluating both short-term gains and long-term consequences.

• Strategic Planning: Making deliberate moves instead of reacting impulsively.

• Ethical Decision-Making: Choosing a path that avoids harm, deception, or injustice.

Examples in Business:

1. “The board acted with prudence by diversifying the investment portfolio.”

2. “Prudence kept the company from entering a high-debt expansion.”

3. “In partnerships, prudence is choosing collaborators whose values align with yours.”

🌿 Islamic Perspective

In Islam, prudence mirrors the practice of consulting (shūrā) before major decisions, and avoiding gharar (excessive uncertainty) in contracts. It’s about weighing the halal against the haram, the benefit (maslahah) against the harm (mafsadah), and always remembering accountability before Allah.

🚀 Your Turn

Reflect: Where in your business or work could more prudence prevent mistakes or unnecessary risk? Think of a decision you rushed into, how might prudence have changed the outcome?

Let’s keep growing, one word at a time!