Cultural Risk
UGM RESEARCHING 'CULTURAL RISK'
Levels of business contact between national cultures are increasing as a result of flourishing globalisation. We have also seen increases in business risk, due to under-developed cultural intelligence on all sides. However, unlike many of the economic risks which are considered random, cultural risks are learnable and avoidable. We don't need to take the very risky, and often costly, trial-and-error approach that might appear to be the only avenue available. Others have successfully navigated these cultural risks and we can learn from their experience. This means we can all take steps to substantially reduce our cultural risk. As we increase the cultural intelligence quotient in a particular relationship, we can expect the risk of loss due to cultural factors to diminish.
In association with Asialink, UGM is currently researching the nature and extent of cultural risk. The study aims to determine which cultural dimensions pose the greatest financial risks, and also which are most prevalent. Researchers expect to develop guidelines for the effective mitigation of key cultural risks.
