👋 The right organizational culture to achieve successful risk management

A review of prior, relevant literature is an essential feature of any academic project (webster & Watson, 2002). Organizational culture is essential to the success of risk management strategies and the performance of the organization. This thesis systematically reviews the literature on the topic of organizational culture and its effect on risk management and organizational performance. It emphasizes how leaders contribute to originating the right culture to mitigate risks, innovate and enhance corporate performance. The thesis also compares cultural forms in different settings to find the right one and describes which practices of risk management contribute to establishing this culture.

“To encourage the right culture, one must have a view on what practices or behaviors should be encouraged or avoided” (Ring et al., 2016).

The Right Organizational Culture to Achieve Successful Risk Management:

The right culture for successful risk management is where employees are:

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Research gaps and recommendations for future work

• Culture is a complicated phenomenon with implicit and explicit components. Therefore, the reviewed literature always considered the organizational culture in one setting and one type of industry. Organizations are becoming multinational, international, and conglomerates. These organizations bring more complicated risks, so it is recommended to research the culture in these types of organizations.
• Hofstede’s cultural dimensions to describe the culture are developed in 1970. It is recommended to reevaluate these dimensions and their fit for the current century.
• In this review, no recommendations to avoid the negative effects of national culture were found, so this subject might be an interest for future research.
• Organizations don’t have one united culture, but rather subcultures that are different in their resiliency and flexibility. Subcultures, how they originate and how they can be affected to succeed in risk management, should be investigated.
• Researching the culture and risk management strategies of companies operating from different locations where teams are scattered around the world and meet virtually.
• The best cultural fit for different objectives and different types of uncertainties.
• More research on how to change a culture that is already existing to fit risk management objectives.
• The effect of dropouts and employment on organizational culture and risk management is an interesting field of research.

Presentation on the topic:

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