Effective Risk Culture And Management

Running head: RISK MANAGEMENT
Risk Management

RISK MANAGEMENT
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Executive Summary
Risk management procedure can be influenced by both risk attitude as well as risk tolerance.
Effective risk culture is very much substantial for the enhancement skill set of the project
associates. This paper will be very much significant to understand how risk culture and the
the risk attitude effects the aftermath of risk management procedure from the point of view of
reputed scholars from peer reviewed articles. The impact of having a good risk culture shall
also be discussed in this paper from different perspectives. The review and the conclusion of
this paper shall be supported using three relevant articles after the concluding section of this
paper.

RISK MANAGEMENT
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Table of Contents
1. Introduction...........................................................................................................................3
2. Influence of risk attitude........................................................................................................3
3. Significance of building a good risk Culture.........................................................................6
4. Example of a good risk culture..............................................................................................7
5. Conclusion..............................................................................................................................9
5.1 Supporting discussions...................................................................................................10
6. References............................................................................................................................11

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1. Introduction
Risk Management (RM) is a technique of managing, categorizing and monitoring
the diverse categories of risks in a systematized modus. The role and the qualification of the
risk manager is very much significant to address the different categories of risks in a project.
Risk culture is the procedure by which a system of values and behaviors of a project team
present in an organization are managed in the first place so that continuous process
involvement is promoted in the project and the commitment level of the project team
members is enhanced. Risk attitude is demarcated as the attitude which is expected from a
chosen person who is trying or willing to take risk (Zhang, Zhang and Shang 2016). The
attitude of the investors of the project can be influenced in the first place using the risk
attitude of the team members.
This paper shall focus on how risk attitude can effect risk culture and the implication
of the creation of a risk culture in complex projects shall be evaluated in this paper.
2. Influence of risk attitude
According to Weber and Klement (2018), risky behaviors, risk culture along with
the risk attitude are related with each other and each of these have a significant influence on
each other. The paper was very much useful as it provided a detailed description on how risk
attitude might affect risk culture. The range of situations of risk attitude and the risk culture
are very much similar as per the discussions of this paper (Wang et al. 2016). The
investigators of this journal reflected that the tactical decision making abilities of the risk
manager in a business are directly related with the management of the risk culture. The paper
provided a detailed description of the ABC model which is a significant aspect of the risk
management procedure of a business organization (Hillson 2013). The role of maintaining