International Journal of Risk and Contingency Management, 1(1), 1-11, January-March 2012 1
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Keywords: Culture, Probability, Risk Assessment, Risk Identification, Risk Mitigation, Uncertainty
INTRODUCTION
The perception of the terms ‘risk’ and ‘con-
tingency’ vary across disciplines and cultures
(Smith & Fischbacher, 2009). It is not often
culture is discussed within risk management,
but it is a relevant factor.
Interestingly, in Asian cultures, where
Buddhism, Confucianism, and Islam religions
dominate, risk is often attributed to spiritual
governance such as the wishes of Buddha,
Confucius or Allah - the equivalent of God from
Christian testament (Strang, 2011e). Eastern
cultures (notably in the Middle East, Africa
and Asia) typically refer to negative events as
bad luck instead of unfavorable risk outcomes
and therefore the tendency is to avoid risks
rather than manage them, while the opposite
is true of risk attitudes in the west such as in
Europe and North America (Strang, 2010a).
This phenomenon can be explained by a di-
mension in the global culture model known
as ‘risk avoidance’, which refers to a bipolar
tendency to either avoid uncertainty (high) or
at the other extreme (low) to control or leverage
risk (Hofstede, 2009; Strang, 2009).
The cultural implications of risk are rele-
vant to cite. Strang and Chan (2010) found Asian
marketing and design teams avoided ‘unlucky
perceptions’ when creating contemporary tech-
nology products such as certain colors (white,
and red, are spiritual) or names such as “1414”
which in Mandarin sounds like “easy to fall to
Socio-Cultural and
Multi-Disciplinary Perceptions
of Risk
Yölande Goodwin, APPC Research, Australia
Kenneth David Strang, State University of New York Plattsburgh, USA, and APPC Research,
Australia
ABSTRACT
This is a review of the extant risk theory literature that hypothesizes new cross-cultural perceptions and
multi-disciplinary techniques have emerged in risk management practice. Basic concepts in risk theory are
introduced and then the generally accepted risk management framework is explained (identification, assess-
ment, planning, and control). Global macro-environment factors and contemporary risk assessment practices
are briefly explored. A multi-disciplinary socio-cultural meta-model of risk theory is developed. The paper
concludes with ideas and proposes research questions for future studies.
DOI: 10.4018/ijrcm.2012010101