This installment of Business Law & Ethics Corner based on the conclusion of research in social sciences, management theory, and risk analysis and defines how the diverse approach in thinking enhances the innovation and expedite the growth in corporate governance and how this diversity of thoughts lead to effective handling of different risks. At the start, the article provides an overview of four key global perspectives and their risk preferences. After that, it defines how risk perception is being affected by psychological processes that also help the individual in decision making. The risk perception and the global perspective are being applied to the risk management case. It then evaluates the current risk management approaches based on evidence from the global financial crisis of 2008. At the end, it shows the diversity of thoughts as a key component in corporate governance to avoid any potential risk.
