Organizations encounter risk every day as they pursue their objectives. In conducting appropriate oversight, management and the board must deal with a fundamental question: How much risk is acceptable in pursuing these objectives? Added to this, regulators and other oversight bodies are calling for better descriptions of organizations’ risk management processes, including oversight by the board.
A new Chatham House paper, ‘Cultural Dialogue in International Security: New Thinking for Europe and America’ has highlighted how the perception of risk changes from culture to culture.
Written by Alexis Crow, the paper says that risk perception is highly subjective and therefore culturally specific: what may be considered a risk in one country may not be in another.
The paper explains how, in the context of attempts to develop dialogue in international security, it is important to understand a culture’s risk appetite.
Although not aimed at business continuity managers the paper provides some useful background information which may help when managing cross-border business continuity management systems.