ESSAY: Potential Risks Involved

Every program has risks associated with it. This week, I want you to review your idea and provide a risk analysis. What are the potential risks involved with this program, and what processes can be put in place to manage these risks? One specific risk that I want you to discuss is related to cultural differences. Please assume that your company is a multinational corporation…will this program work in all areas of the business? If not, how can it be adapted for the other country/countries involved?

This does not need to be written as a formal research paper, but all research provided does need to be cited in APA format. You may write in the first person because you are presenting your own ideas. You do not need to provide an abstract, but you do need an APA formatted title page and reference page. Your paper should be a minimum of 2 pages (approx. 700 words) not including the title and reference.


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Potential Risks Involved

Risk analysis and management is a process that most organizations embrace to facilitate secure operations within the firm. Every new strategy introduced into a business has the potential to cause risks. These risks require effective handling to ensure that the risks do not bring negative consequences to the firm. Every potential risk requires a unique approach to handle it (Aven & Zio, 2013). Flexibility in the solutions required to manage risks is highly required so that they can offer an effective risk management approach. Culture related risks, especially in motivation programs, tend to affect an organization’s performance. For instance, cultural influence in the use of incentives may be a great risk that may cause disorientation of the workplace’s beliefs. Developing a culture assessment approach will be an effective risk analysis and management approach that will boost the success that the motivation program has on an organization.   

Review of the Program

            Motivation in an organization has, in most cases, given good results on a firm’s productivity and efficiency. Various approaches that a manager can use to gain the loyalty of the workers include authority and economic rewards, recreation programs, high wages, job security, good working conditions, subsidized education, and fair supervision. The purpose of using different motivational approaches and rewards on the members of an organization is to increase efficiency and productivity due to the improved gratitude and loyalty to the organization. In addition, these approaches can have different impacts on an organization. An evaluation of the importance of motivating employees illustrates that motivation has a psychological impact on employees (Aven & Zio, 2013). The psychological impact influences the employees to engage in productive behaviors by boosting their moods. As a result, a risk in disorienting employee’s moods through motivation approaches looms. The use of twenty percent of employees’ time at a company as a break is a motivation strategy that may bring about negative consequences to a firm. The probability of negative results in motivation strategy makes it a material risk to a firm, thus calling for an appropriate way to evaluate the motivation strategy.

Risks Related to Cultural Differences

Understanding cultural differences is a critical aspect of any multinational corporation.  For any business to prosper, it is necessary for people to be aware of the cultural differences such as language differences, time management, and etiquette that exist within that culture.  It is important to note that being ignorant of cultural differences such as people’s traditions and beliefs can result in conflicts in the organizations, thereby slowing the businesses performance and efficiency. Discussed below are specific risks relate to cultural differences.

Hierarchy in the Organization

            The discernment of administrative and management hierarchy is characterized by the approaches of cultural norms.  For instance, some regions prohibit the contributions of junior staff during meetings. In most countries, such as Japan, there exist a dependency on attitudes and community values. Elders receive esteem from society, and this respect is needed in companies to achieve their goals. Such hierarchy is, however, different from Scandinavian countries such as Norway where equality across all the departments is emphasized.

Personal Space Expectations

Different cultures have different accepted ways of physical contact and personal space expectations among the employees. Some people prefer kissing the business colleagues on both cheeks, especially among the Europeans. Americans, on the other hand, prefer arms-length from business associates. Other cultures insist on keeping some distance while having a conversation. Besides, other cultures, such as people from Russia, accept female colleagues to be walking while holding each other’s arms.

High and Low Context

High context cultures such as the U.S require the orders to be elaborated in the businesses while the low context cultures do not need clarification of the commands as they explain the essentials in the message.

Customs, Mannerisms, Gestures

Norms and stances should be adhered to when doing business with a person from a different country to ensure deals are achieved. Different words in business have different meanings between Western and Eastern cultures. Handshakes, silence when having conversations and other body cues could mean different things for people from different cultures. It is essential to be aware of these differences to ensure successful understanding and avoid disrespectful responses.

Management of the Cultural Influence Risk

Cultural influence risk can be effectively analyzed and managed in a firm by evaluating employees beliefs on the motivation approach and sensitizing them on how the motivation approach should work. Taking a motivational break every day at the workplace is a treasurable moment that most employees may have different opinions on it. Collecting employees’ opinions in order to design a highly preferable motivational environment would be an effective move in facilitating a seamless risk management process (Aven & Zio, 2013). The management approach will help in ensuring that every employee feels part and parcel of the firm’s decisions. For instance, offering a variety of relaxing activities while on break would incorporate every employee’s taste. This will optimize the break’s purpose to improve employee’s innovativeness thus minimizing the misinterpretation of the break time.

Understanding the interaction between employees would be another approach that will help prevent problematic cultural issues. (Rose, 2014). Being aware of basic societal and employee needs is a critical aspect that will promote effective decision-making, embrace peoples’ views and ideologies, and enhance effective communication. In simple terms, before launching a new business venture or marketing campaign, it is always essential to conduct thorough research to become aware of the target audience needs and expectations. If a business is aware of the cultural background of the target audience, then it will be able to adapt better. This risk analysis and management approach would apply in all areas of business and all working environments, thus facilitating cultural risk solution’s flexibility.


Aven, T., & Zio, E. (2013). Foundational issues in risk assessment and risk management. Risk Analysis34(7), 1164-1172. doi: 10.1111/risa.12132

Rose, K. (2014). Personal effectiveness in project management: tools, tips & strategies to improve your decision-making, motivation, confidence, risk-taking, achievement and sustainability. Project Management Journal45(2), e1-e1. doi: 10.1002/pmj.21398

Specht, M., Chevreau, F., & Denis‐Rémis, C. (2006). Dedicating management to cultural processes: Toward a human risk management system. Journal Of Risk Research9(5), 525-542. doi: 10.1080/13669870600717913

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