Page 49 - Risk Management in current scenario

India. How does a listed insurance Company react to deaths caused by a
pandemic with similar global news coming from other countries as well.
Risk culture helps in integrating the thought process of scanning horizons
to anticipate emerging risks.

What is Risk Culture?
The Center for Advance Research on Language Acquisition defines culture
as shared patterns of behaviors and interactions, cognitive constructs and
understanding that are learned by socialization. The culture of the
institution is influenced by the continual behavior of its members. This
behavior is influenced by individuals' values, beliefs, and attitudes.

There is also a contribution of existing culture of the organization in
shaping up the total behavior. The behavior of a person is influenced by
external factors such as childhood upbringing, education, family
traditions, social impact etc. and personal values and beliefs. The internal
factor that influences the behaviors are genetic makeup which comes
from the parents.

The attitude comes from the way that you think and feel about
something, so attitude has linkage with the personal make-up of the
individual. So culture is a combination of behavior and attitude. Overall
resulting culture is also influenced by prevailing culture of the organization
apart from behavior and attitude of individuals.

Current Risk Culture
In the current context in India, the behavior of individuals towards risk is
almost minimal because of two reasons. One, because risk management
was never at the forefront of the business culture and second risk
management is never taught at any of the business schools in India in
their core curriculum. Therefore, risk attitude has never gone into the
DNA of the individuals or organizations to make it a part of the working
culture and therefore, such pro-risk aware behaviors are not exhibited.

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