Risk Culture and Risk Attitude - Literature Review
Added on 2021-02-20
12 Pages3059 Words143 Views
Literature Review RiskCulture and RiskAttitude
Executive Summary Risk culture is mainly termed as an formative set of norms, attitudes, behaviour,corporate values and competencies which is mainly linked to risk awareness and risk taking thatfurther lead towards determining organisation commitment towards style of risk management. Inaddition with this, it has been defined that risk culture influence management and employeesdecision in daily basis activities. In this present report, formative discussion has been made on,the manner in which risk attitude influence risk culture and need to build good risk culture withproject team.
Table of ContentsExecutive Summary ........................................................................................................................2Introduction......................................................................................................................................4Body of report..................................................................................................................................4Meaning of risk culture..........................................................................................................4Meaning of culture.................................................................................................................6Need to build a good Risk Culture with project team............................................................6Conclusion.....................................................................................................................................10REFERENCES..............................................................................................................................11
IntroductionRisk culture is defined as an attitudes, beliefs, values, knowledge and understandingrelating to risk which is shared by group of individuals with a common set of purpose. Inaddition with this, risk culture is mainly related compliance and operational risk and can befurther termed as Key Risk Indicator (van Rooijen, M., 2017). Thus, it become essential for anorganisation to have well effective risk culture which they enable rewards to individuals for theirtask and further inform them with each and every required information. This report covers theaspects of risk culture along with risk attitude that influence risk management outcome. Inaddition with this, report also cover the need as to build a good risk culture with project team.Lastly project cover discussion related to the manner in which good risk culture look like. Body of reportMeaning of risk cultureRisk Culture refers to values, beliefs and knowledge about the risks shared by the groupof people having common objectives. Risk culture is applicable to all the public, private andvoluntary organisations. Risk Culture is the element of the risk management which cannot becontrolled directly as they are embedded in the culture of an organisation. A risk culture in theorganization means the employees of the company knows about for what the company stands,what are their boundaries within which they can operate in order to achieve the long termstrategic goals for the organisation. It is important for every organisations to take risks in order toachieve their objectives as risk culture is important for several reasons which includes:Compliance, Organisational performance and risk management. Compliance : Risk culture is thecompliance requirement for understanding the culture at the organisational level. OrganisationalPerformance : Risk Culture is an important determinant for the success and failure of theorganisation in which there is principle emphasis on the many areas of behaviour and culture.Risk Management Effectiveness : Risk Culture determines the ability to take the right risk safelyas it directly affect the effectiveness of risk policies, practices and procedures.
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