Risk Perception

In analyzing risk perception, consideration is taken to identify the factors that may affect a country’s approach to this in terms of business. In Paul Slovlic’s book The Perception of Risk, the concept of risk is described as an outgrowth of society’s concern about coping with the dangers of modern life. Similarly another definition of risk perception is that it is the subjective judgment that people make about the characteristic and severity of risk. There are many areas that have been studied in terms of risk perception. In this paper focus is given to comparing the business culture styles of China and Germany to contrast and compare how it may affect their risk perception.

China

Doing business in China is highly based on the development of good personal relationships over time. They consider relationships more important than tasks. The emphasis here is that they are doing 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 they are listening to you but it may not mean the same as it does in other cultures. Chinese have a hard time saying no and the organizational structure is hugely bureaucratic so things are unlikely to happen fast. Their teams are groups of specialists working under a leader who may not be a specialist but will have links to the head of the company. Their structure is vertical so consensus from the team on decisions is common so expect the process to be slow. Chinese are punctual, cancellation or lateness may be seen as insulting unless good reasons are provided. They are quit...

... middle of paper ...

...pective relationship as both sides will need to take information back to their team to work on a way forward. 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 the relationship building is prior to agreeing to do business.

No matter what cultural style a country may have – learning about it and respecting other cultures sincerely is a key factor in determining future success. It would be naïve to think how you do business in your own country can be extended to any country but it is important to note the cultural styles of a country may dictate their attitude toward risk perception. If you come off as totally opposite of their style and comfort level it would not be difficult to make the conclusion they will not be jumping at the opportunity to pump money into your idea.