Relationship between Risk Attitude and Risk Culture

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Introduction
Risk management is defined as a process of identifying, assessing and controlling threats
to an organisation so that the company can get advantage while conducting a project
management practice. However, there are several factors that can influence the risk management
practice such as the risk culture and the risk attitude (Naeem et al. 2018). Therefore, it is
important for the organisation to put focus on the risk culture and the attitude or approach
towards the risk. Based on the research of Wood and Lewis (2017) it can be stated that culture is
associated with the perception of repeated behaviour that a manager or the people lingering with
a project can develop to face the risks and mitigate as per their ability. Therefore, risk culture
play a significant role in creating a bridge between the personal attitude and the organisation
culture. This report aims to deal with the relationship between risk attitude and risk culture and
figure out the values or importance of risk culture in projects. Apart from that the features of
good risk culture is also discussed in this report with preference to shape the paradigm of risk
culture and attitude in a project management context.
Discussion
Relationship between risk attitude and risk culture
According to Wang et al. (2019) risk culture is dynamic notion that comprises a long
range of factors from the organisational culture to personal level understanding of the risk.
Therefore, it is important to define risk culture in a larger aspect. Based on the research of
Suardini et al. (2018) it can be stated that risk culture is a paradigm or a practice that envisions
value, belief, knowledge, attitude and understanding the fathom of the risk shared by the people

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working in a project management. In other words, it can be stated that the role of risk culture is
to shape and define the actual practice of the organisation and figure out the defining practice
that can lead to deliver success to the project. Therefore, it is definitely an important aspect for
the private organisations to consider its risk culture before taking important decision.
On the other hand, risk attitude is the response of a person to evaluate the risk and act
accordingly. Palermo, Power and Ashby (2017) articulated that a risk attitude can be emerged at
the conjecture of risk and mitigation. In other words, risk attitude is the approach through which
a person envisions the risk and plan to face it. Therefore, there are certainly a number of risk
related attitudes that people are possessed. For example, there is a nature of risk aversion where
people can gravitates towards certain and rejects any kind of uncertainty. On the other hand,
there are also people who can seek risks. It indicates the behaviour or the attitude of a person
inclining towards less-certain activities. There is also a risk neutral approach where an individual
can act on the basis of delivering a good insights into the risk identification process.
Therefore, it is certain and evident that there are great link between the notion of risk
culture and risk attitude. Form the research of Kucharska and Kowalczyk (2016) it can be stated
that the risk culture creates an ambience for the people to make a positive or negative approach
towards the risks. More prominently, the risk culture is resembled with the organisational culture
and individual aspiration. As a result of that it is the job of the risk culture to ascertain some
practice that will influence the person or the team to deal with the risk positively or negatively.
The positive approach can be identified as the risk seeking where the team will act proactively to
mitigate the risk in limited time. On the other hand, there is also risk aversion attitude that
connotes a negative risk attitude where people are more intrigued by the certain options rather
than taking risks. This symbolises the influence of risk culture on risk attitude.