Towards an Ideal Risk Culture for (re)insurance Companies
Author: Angela Zeier Röschmann
Publisher:
Published: 2016
Total Pages:
ISBN-13:
DOWNLOAD EBOOKA risk culture concept is developed by integrating insights from organizational and safety culture research with risk management and insurance research and practice. In light of the common call for a sound risk culture, a normative concept outlines those organizational values that are characteristic of an ideal risk culture for (re)insurance companies from the perspective of risk management: uncertainty avoidance, scientific orientation, intrinsic motivation and cooperation. The power of risk culture comes from its influence on how employees perceive the relative priorities of different organizational goals and how perception guides risk behavior. Against this background, the meaning of embeddedness is addressed and the argument is made that the current focus by the risk and insurance practice on alignment and consistency as well as viewing risk culture as a fourth line of defense puts a limit to the understanding and potential contribution of risk culture. Furthermore, the notion of the ideal risk culture is challenged. This doctoral thesis concludes that mind-sets about innovation, agility and risk need to move closer together. A broader understanding of risk culture has the potential to contribute to the inherently needed balance of empowerment and control.