Corporate risk management frameworks and strategies

Psychological Attitudes Toward Risk

Risk is an accepted part of the modern business world. Most companies comprise a risk management plan or structure, by which all workers must abide in order to minimize risk and optimize objectives and profit for the company. Risk is however also problematic in terms of attitude. Because human beings are not only mechanical entities that perform functions, the psychological aspect of risk management is at least as important as its physical and practical aspects. While attitude towards risk management relates to all types of possible risks within a company, it is particularly applicable to situations in which risks relating to worker interactions are at issue.

In the case of favoritism and prejudice, for example, racism and sexism are particularly sensitive issues within a workplace. What complicates the issue is that different people have different attitudes towards racism and sexism, as well as what constitutes these. A man who complicates a woman on a new skirt, for example, might be regarded as sexually harassing the woman, while another employee may react to it as a compliment. The same is true of the person making the comment. An innocent remark can turn into harassment by means of elements such as tone of voice or gesture.

The same is true of racism. Some are for example extremely sensitive about any remarks, however innocent, that could be construed as racism, while others are not. From the other point-of-view, some people are highly prejudiced towards people from certain ethnic backgrounds.

All the cases mentioned above are relevant to psychological attitude. Part of risk management is determining possible areas of risk within the interrelationships of workers. Employees who experience problematic interrelationships as a result of racism or sexism are unlikely to be as productive as they need to be. These issues therefore represent a risk for the company, its objectives, its productivity and ultimately its profit margin. It is essential that such risks be managed in an appropriate and targeted way.

One way in which to mitigate the risk of problematic interpersonal relationships within the workplace is by means of both formal and informal gatherings. Informal gatherings are beneficial in terms of helping employees to become familiar with each other in a context other than work. Work parties and lunches can for example be used in this way. This kind of informal gathering is perhaps best instituted when there is not a large amount of tension between workers.

For greater tension levels, more formal measures can be taken. Seminars presented by human relations experts can for example help to teach employees the importance of functioning within a diverse environment. Such seminars should be presented in such a way as to not threaten employees or their attitudes, but rather to gradually change their attitudes. Seminars can for example begin with lectures on different cultures, their differences and similarities. Employees can then be required to work with at least one person from a different culture, and learn something interesting about the culture involved. This can then be used as a basis for bringing home to potentially hostile employees the fact that they are working as a group of human beings rather than icons of each particular culture represented.