Cultural Risk Management

Qualifying and quantifying the risks associated with inappropriate cultures and poor cultural alignment has been largely guess work till now. Using the cultural understandings and language provided through Management Drives® Concepts enables sophisticated and detailed analysis of the risks and opportunities associated with the current culture and sub-cultures of the organisation.

The methodology used by Management Drives® Australia is fully compliant with AS/NZS 4360:2004 – Risk Management, and the outputs of the analysis can be incorporated into the Organisation’s risk register. This enables the impact and effects of cultural misalignment to be compared with other risks facing the organisation, and hence provides a rational and transparent framework to determine cost effective activities in the effective cultural management of the organisation.

The framework imports the Organisation’s existing calibrated consequence tables or, working closely with the client, a calibrated consequence table can be developed which supports risk analysis of all facets of the Organisation.

The Management Drives® Australia framework is particularly powerful in that it provides a logical and transparent connection between:

• the internal and external context of the organisation,
• the clients expectations and requirements, and
• the cultures and approaches of the functional units that deliver products and services to customers and clients

The methodology also provides a logical process for selecting the most appropriate mitigating strategies to address the cultural risks that the Organisation faces.