Topic > Risk perception - 703

In the analysis of risk perception, the identification of factors that can influence a country's approach to this in business terms is taken into consideration. In Paul Slovlic's book Risk Perception, the concept of risk is described as a consequence of society's concern to deal with the dangers of modern life. Similarly, another definition of risk perception is that it is the subjective judgment that people make about the characteristics and severity of risk. There are many areas that have been studied in terms of risk perception. In this article the focus is on comparing the corporate culture styles of China and Germany to compare and contrast how this might influence their risk perception. China Doing business in China is heavily based on developing good personal relationships over time. They consider relationships more important than tasks. The emphasis here is that they do business with people rather than companies, so personal contact and loyalty are important. There is a huge importance placed on sincerity above all other qualities. Their communication style tends to be very indirect. It is not uncommon for them to say “yes” to acknowledge that they are listening to you, but it may not have the same meaning as it does in other cultures. The Chinese have a hard time saying no and the organizational structure is extremely bureaucratic, so things are unlikely to happen quickly. Their teams are groups of specialists who work under a leader who may not be a specialist but will have connections to the head of the company. Their structure is vertical, so team consensus on decisions is common, so expect the process to be slow. Chinese people are punctual, cancellation or delay may be considered offensive unless good reasons are given. Out came… mid-paper… perspective report as both sides will need to take the information back to their team to work on a way forward. The Chinese are generally risk averse, but once they commit, their plans tend to be long-term, which is not unusual when you consider how important building relationships is before agreeing to do business. It doesn't matter what cultural style a country may have: learning it and sincerely respecting other cultures is a key factor in determining future success. It would be naive to think that the way you do business in your country can be extended to any country, but it is important to note that a country's cultural styles can dictate its attitude towards risk perception. If you seem totally opposite to their style and comfort level, it would not be difficult to come to the conclusion that they will not jump at the opportunity to invest money in your idea.