Executive Summary: Risk Culture and Risk Attitude in Organizations

This report provides an executive summary on risk culture and risk attitude within organizations, emphasizing their influence on risk management outcomes and project team performance. It explores the significance of risk culture, encompassing values, trust, knowledge, and attitudes, and how it fosters open communication, knowledge sharing, and ethical behavior. The report details how risk attitude, the internal human action procedure, shapes decision-making in various situations. It also highlights the importance of building a strong risk culture within project teams, outlining steps for determining risk appetite, preparing staff, and fostering awareness of customer expectations and regulatory requirements. Furthermore, the report discusses the characteristics of a good risk culture, emphasizing alignment, responsibility, and transparency in management practices to enhance organizational effectiveness and achieve positive outcomes.

RISK CULTURE AND RISK
ATTITUDE

EXECUTIVE SUMMARY
This report covered culture and their significance in the organization. The risk culture and
their importance with project team addressed. This report covered risk culture and risk attitude
which can influence the outcomes of risk management. It described risk attitude which boosts
risk culture. In this report had been covered risk management policies and their effectiveness in
organization. The need to build a good risk culture with the project team.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Literature review..............................................................................................................................4
Risk culture and risk attitude can enhance the outcomes of the risk management......................4
Risk attitude influences risk culture.............................................................................................6
The need to build a good risk culture with the project team........................................................7
Good risk culture..........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Risk culture refers to a term which describes the values, trust, knowledge, attitude and
comprehension about risk which is shared by number of peoples along with general concern. On
other hand risk attitude refers a range of possible behaviour or attitude which can adapt
according to situation, as result it can be in favoured or unflavoured. Both culture and attitude is
important for management. For example risk culture encourages management for open and
upward communication, shares informative knowledge and their practices, continuous procedure
development and strong sincerity for ethical and business behaviour. On other hand risk attitude
induces procedure of management in right direction.
MAIN BODY
Literature review
Risk culture and risk attitude can enhance the outcomes of the risk management
As per the View Hillson and Murray-Webster, (2017) culture is important for
organization because it describes evolutionary identity of peoples and it supports to understand
value of ethics and their principals. It gives meaning of life, as result gets different identity from
others around the world. Risk culture refers the system of values, belief and behaviour which is
available in business and it gives shape to risk decision of the management and their employees.
The main purpose of risk culture is to achieve common agreement of business and their purpose.
Risk management handles all risk regarding project or organization. Risk management refers the
management which is specially organized to identify organization opportunity and risk which
can give positive and negative impact on organization. Management supports project team to
recognize possible risks, issues before they take place. It permits organization to set up
procedures to negligible, minimizing its consequence so that positive aspect comes in
organization. Risk management makes plan to overcome potential risk and threats. The main
goal of organization to recruit risk management team is that it enable to perform various
operations such as risk identification, risk analysis, risk control and risk treatment. Risk
management takes care of whole operation which is performed by them for achieving mission of
the company. Management takes risk for project or organization which happens wrong such as
rising costs, client dissatisfaction, employee’s turnover, delayed material supply and technology
disappointment. These are risk of organization which is deal by risk management in well-formed
so that organization or project gets target. Risk culture helps risk management to understand

employee’s behaviours and customers behaviours regarding process. The employees who belong
to different culture along with different skills, helps risk management for taking right decision
which can influence organization performance sophistically without risk. Risk management
offers incentive or reward strategy for diverse cultural employees as result number of employees
gives the best performance and explores new ideas which help risk management to take risk for
project or organization.
Figure 1Risk Culture
Risk culture helps risk management to take high risk and leads positive outcomes in
organization. To understand the concept there is an example, organization wants to promote their
business or products in other countries, and risk management unable to take decision, in that
state risk culture helps risk management to tell issue or opportunity for organization, as result
risk management easily can take risk and meets organization objectives. Technology disappoint
is risk for organization project, in that state risk culture who possess different strength, helps risk
management to resolve the issue and gets positive outcomes in company. Client dissatisfaction is
also issued for organization where risk management unable to find issues, in that situation risk
culture enable to explore idea so that clients meets their objectives. Culture supports risk
management to identifying risk and resolves them within time. Performance management
analyses risk culture performance and implements decision so that organization achieves goal.
On other hand risk culture follow decision and helps risk management. Risk management makes

strategy to overcome upcoming threats whereas risk culture gives ideas to make it more
effective. Thus risk culture helps management to achieve their outcomes.
Risk attitude influences risk culture
As illustrated by Eriksson, (2017) risk attitude is important for risk culture because it
gives shape to individual and group of peoples to work in risk situation. For example if a person
is mentally prepared to take risk, in that state can works confidently so that enables to take
positive aspect. In simple term risk attitude is internal human action procedure and his
positioning which is used to choose right response according to situation. Generally attitude is
differed from human characteristic. Attitude helps human being to understand perception of
situation and guides us to manage situation. Attitude gives response in two situations such as
favourable or neutral situation and holistic situation. Favourable or neutral situation, when
environment is positive, behaviour drives by attitude to give response positive. For example
organization decides to take opportunity or avoid risk. To implement decision is not mandatory
for organization, means organization is free to take decision and gives response. In that case if
number of peoples adapts positive attitude and expects to get positive outcomes in company. It
supports them to maintain control of their behaviour till then environmental doesn't receive
positive. On other hand holistic situation when group of peoples or individuals gets environment
in negative situation as result behaviour gives direct response while attitude plays effective role
in that case. For example personal safety can be threatened and response takes unthinkable about
outcomes, in that state attitude directs person to take decision effectively while behaviour of
individual give reactive response till then environment is negative. Through the both cases can
get attitude is a driver of behaviour which gives response according to situation. Risk attitude
supports risk culture to take appropriate decision in risk situation. Risk attitude controls emotions
of behaviour and gives prospect ideas which can lead prosperity in organization. In stressed
condition, risk attitude promotes risk culture and manage their emotion till then situation doesn't
come in favour. Risk attitude helps risk culture to keep individual behaviour according to
situation and understand concerns for risk. Individual or group of people whose behaviours are
repeated for situation can influence culture behaviour. If organization wants to take risk which
can be opportunity or threaten, in that state if group of employee's gives equal statement or offers
same idea to achieve single goal, as resulted culture influences at workplace and gets possibility
for profitable outcome. Attitude gives shape of risk culture action during favourable and holistic

situation. According to situation influences action till then situation doesn't meet objectives.
Thus, attitude plays vital role to influences risk culture at workplace and maintains well-being in
organization.
Figure 2 Risk Culture Framework
The need to build a good risk culture with the project team
According to Murray-Webster and Hillson, (2016) risk culture is a driver for risk
management who plays significant role in decision. To build risk culture in organization has five
steps such as determine risk appetite which is identified by risk management that, which fact is
more important for project acceptable, team or organization. According to situation risk
management prepares staff in three forms: team’s attitude and behaviour about risk,
organizations culture towards the teams' attitude and behaviour. To build risk culture in
organization with project team is important for organization because number of employees who
belongs to different culture they are aware about customers expectation, government policies,
investors requirements and other regulatory requirements. Such kind awareness can help project
team to take risk as opportunity. Internal attributes such as employment policies, reward strategy,
communication, self-esteem, incentive etc influences cultural behaviour to give the best
performance. For example risk management offers training classes to employees where trainer
gives ideas to tackle situation and gives challenges to analyses their capability. On other hand
employees gets opportunity to perform their skills and improves their skills so that enables to

deal with situation at workplace. Management involves employees in decision-making, they get
values and explore new ideas s0 that decision becomes more effective. Management analyses
risk culture by giving challenges and helps employees to overcome their weakness. Executive
management supports to build risk culture with project team by analysing their behaviours
through their action and decision which is taken over the period. Management organizes
awareness campaign for employees so that they gain knowledge around the world and creates
some creativity which helps organization to get success. The main reason to build risk culture
with the team is that some projects which is affiliated from risk. In that situation if employees are
unaware, and they take wrong decision as result organization gets loss. On other hand if
employee if they aware about project risk and takes action effectively which reduces risk as
result organization gets positive outcomes. That why risk culture is important for project team.
Management conducts periodically evaluate progress classes. The main goal of the classes is to
monitor employee behaviour, action and attitudes towards situations. Quantitative and qualitative
measures of risk culture is analysed by classes. There are some indicators which monitors risk
culture effectiveness at workplace such as level of executive management sponsorship in
program which influences risk culture. Level of business ownership of risk management, it plays
vital role for building risk culture in organization so that employees possess self-intelligence or
risk attitude for dealing with situation. Manager permits employees to explore ideas and gives
them values by listening properly and analyses effectiveness. Management supports team work
during risk situation so that number of action repeated which influences cultural behaviour at
workplace. Risk management allows employee to have open, honest communication on risk so
that serious decision is taken by team. Risk management recruits such kind employees who have
control on their attitude during unfavourable situation and enable to take fruitful decision which
leads effectiveness in work. Organization gives challenges to employees along with deadline so
that employees become active for each situation and deal with situation in well-formed manner.
It is important for project team because they take only those project which doesn't bear risk and
leads profitability in company.
Good risk culture
As per the view Chimwai and Munyanyi, (2019) risk culture can be good when number
of management is aligned in well-formed manner and takes responsibility for each operation.
Management are commitment board and senior management helps project team to recognize the

risk management competence which can lead ineffectiveness in organization. To clear risk
policies, process and responsibilities so that each risk culture influences in organization. HRM
choose appropriate practice so that enable to identify good risk management practices and also
aware to wrong action of risk management. Human resource management recruits such kind
employees whose skills match with job position so that capable to identify risk and helps risk
management to get goal of company. Manager conducts awareness campaign for employees so
that employees get opportunity to improve their skills and shares their experience to other
peoples. Manager provides friendly atmosphere to employees so that they can communicate
openly and discuss risk honestly. Management gives transparency in decision which encourages
employees to give the honest performance at workplace. HR encourages risk management to deal
with challenge effectively so that risk ration decreases and organization meets positive outcomes.
Risk management incudes number of management levels such as Board, group compliance or
risk, business executive committee and product governance committee. Risk management makes
plan and involves number of member and polices such as commitment from all level of the
organization, policies and procedures which is accepted and distinctly explained for all
employees, number of groups assigns roles, responsibili9t and accountability, appropriate
sources are allocated for the plan training, testing and monitoring of plan by risk management
continuously so that obstacles doesn't create issues. Thus risk culture looks well in organization.
CONCLUSION
It can be concluded risk culture and risk attitude. Risk management and their importance
have been concluded in report. Risk culture and their significance in organization and risk
management have been concluded in this report. This report can be concluded risk attitude which
influences risk culture and describes behaviour which is based on attitude. This report has been
concluded risk attitude which gives shape to action. It has been concluded needs to build risk
culture with the project team in which describe that risk culture helps risk teem to choose
appropriate project, so that fruitful outcomes in organization.

REFERENCES
Books and Journals
Chimwai, L. and Munyanyi, W., 2019. Risk Attitude, Risk Perception and Risk Management
Strategies Adoption in Zimbabwean Small and Medium Enterprises. Journal of
Management and Economic Studies. 1(2). pp.53-68.
Eriksson, J., 2017. Threat Politics: New Perspectives on Security, Risk and Crisis Management:
New Perspectives on Security, Risk and Crisis Management. Routledge.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
Hillson, D., 2017. Managing risk in projects. Routledge.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Hopkinson, M., 2017. The project risk maturity model: Measuring and improving risk
management capability. Routledge.
Murray-Webster, R. and Hillson, D., 2016. Managing group risk attitude. Routledge.
Renn, O., 2017. Risk governance: coping with uncertainty in a complex world. Routledge.
Wang, J., Zou, P.X. and Li, P.P., 2016. Critical factors and paths influencing construction
workers’ safety risk tolerances. Accident Analysis & Prevention. 93. pp.267-279.