Managing Cultural Risk in Global Business
Cultural risk refers to the struggle because of differences in language, customs, norms, and customer preferences. Inability to manage cultural differences can result in weak market share, low or negative return on investment, reputational damage and missed opportunities, as well as legal challenges, expatriate failure, productivity losses and premature termination of contracts, joint ventures, and partnerships. Cultural barriers may be equally relevant intra- nationally as internationally. Cultural Intelligence acts as a tool for managing any form of cultural diversity, whether national, generational, gender, ethnic, health status, sexual orientation or other subculture. It also helps to turn a business risk into a strategic strength.