The Meaning of Corporate Culture

Subject: Corporate Culture
Pages: 1
Words: 276
Reading time:
< 1 min

Corporate culture implies the belief, the values, ethics, procedure and atmosphere that is inherent in an organization, and in general is the way an organization does its thing. The cooperate culture, therefore, determines the standards of efficiency in an organization. Co-operate culture has a great role to play in an organization and more especially in risk management. In risk management, the co-operate culture determine the cautiousness of the staff in focusing the possible risks that might arise in the future and the possible remedies to encounter them.

Cooperate culture also determines the pattern in which risks are encountered in the current state as they happen because culture of an organization influences decision-making on the possible means to solve a given crisis as some other alternatives might be perceived as being unnecessary and other being necessary in keeping the interests of the parties involved. For example, a company might be faced by liquidity problems, and it can solve this by various alternatives at their reach, but they may choose to raise the cash to solve the crisis through a fundraising other than going for a loan because this has been their tradition even though a bank loan seems to be quite fast and reliable. The other cultural factor is the flow of information and the share of powers in an organizations which will affect risk management in the sense that the junior staff might run short of taking a step towards a crisis management if the powers are all concentrated within the top managers of the company, hence an impact on the risk management of the company.