Rigid, Fluid and Context‐Dependent Enterprise Risk Management

Cultural theory of risk is a novel theory that offers an ERM perspective1 that opposes the established perspective of the two dominant but competing theories (classical economics and behavioural finance) in an original and promising way. In the first section, I want to clarify what I find illuminative and what I find dangerous in such a theory. In order to do that, I will introduce the theory’s ERM perspective and try to place it relative to the views of the two mainstream theoretical competitors—that is, of classical economics and behavioural finance. In the second section, I will assume a broader view and try to explore how the theory’s ERM assumptions and prescriptions fare relative to the perplexities introduced by our postmodern, technological world. In the concluding section, I will shift my focus to the “context” of a “context‐dependent ERM.”