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  • Essay / Risk Perception - 703

    In the analysis of risk perception, consideration is given to the identification of factors that may affect a country's approach to business. In Paul Slovlic's book, The Perception of Risk, the concept of risk is described as the result of society's preoccupation with 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 characteristics and severity of risk. Many areas have been studied in terms of risk perception. In this article, the focus is on comparing the corporate culture styles of China and Germany to compare and contrast how it may affect their risk perception. China Doing business in China relies heavily on developing good personal relationships over time. They consider relationships more important than tasks. The emphasis here is on the fact that they are dealing with people rather than companies. Personal contact and loyalty are therefore important. Great importance is given to sincerity above all other qualities. Their communication style tends to be very indirect. It's not uncommon for them to say "yes" to acknowledge that they're listening, but it may not have the same meaning as in other cultures. The Chinese have a hard time saying no and the organizational structure is extremely bureaucratic, so things are unlikely to happen quickly. Their teams are groups of specialists working under a leader who may not be a specialist but will have connections to the business leader. Their structure is vertical, so team consensus on decisions is common, so expect the process to be slow. The Chinese are punctual, a cancellation or delay can be considered insulting unless there are good reasons. They stopped ... middle of paper ... prospective relationship because both parties will need to pass the information back to their team to work on the path forward. The Chinese are generally risk-averse, but once they do, their plans tend to be long-term, which is not unusual considering the importance of establishing relationships before agreeing to do business. Regardless of a country's cultural style, learning about and sincerely respecting other cultures is a key factor in determining future success. It would be naive to think that the way you do business in your own country can be extended to any country, but it is important to note that a country's cultural styles can dictate its attitude towards the perception of risk. If you feel like the complete opposite of their style and comfort level, it wouldn't be hard to conclude that they won't jump at the chance to throw money at your idea..