What is the meaning of prudence guideline?

Answer 1

Prudence guidelines refer to a set of principles or standards that govern the behavior of individuals or organizations, particularly in financial and investment contexts. These guidelines emphasize caution, careful consideration of risks, and the importance of making informed decisions to protect assets and avoid undue losses. Essentially, they promote a conservative approach to managing resources, ensuring that actions taken are in the best interest of stakeholders and aligned with long-term goals.