Fundamentals of Enterprise Risk Management

CHAPTER 13SUBCULTURE RISK

RISK QUOTE: Our loyalties must transcend our race, our tribe, our class, and our nation; and this means we must develop a world perspective.

—REV. DR. MARTIN LUTHER KING, JR., CIVIL RIGHTSLEADER

RISK QUOTE: Why do they call it rush hour when nothing moves?

—ROBIN WILLIAMS, COMEDIAN

Just as strategic risk is not the responsibility of a single risk owner, cultural exposures are the culmination of multiple units and activities. Subculture risk, sometimes called hierarchy risk, is inherent in a large entity. The concept dates back to the mid-1800s, when growing organizations developed a structure and techniques to manage relationships, tasks, and behavior. Elaborate sets of rules accompanied the growth, so each entity took ...