eThesis - School of Business electronic theses

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The term risk culture means how people in organisations understand risk. Risk culture influences all risk management related aspects. The term risk culture is relatively new. No comprehensive descriptive model of risk culture can be found in the literature. To understand risk culture better a descriptive model is needed.

This thesis aims to answer the following research questions: How risk culture can be described, how different culture types can be classified, and what risk management methods are feasible for different culture types? The focus of the thesis is on operative risks in the energy sector.

In this thesis a comprehensive descriptive risk culture model is presented. In the first half of the thesis the most important theories of individual and organisational aspects of risk and related topics are reviewed. The model takes into account the most important aspects of risk management. The model consists of four layers: individual perception of risk, organisational culture, decision making and risk culture.

To improve applicability of the model a typology of risk culture types is developed. Using four dimensions in total sixteen different culture types are identified. A questionnaire was used to help defining the dimensions. The different culture types are presented in order to highlight differences between risk cultures.

General characteristics and applicability of different risk management methods are reviewed. For each risk culture type the most applicable risk management methods are proposed. Risk management method review is used to demonstrate potential uses of the risk culture model.