Risk culture in a South African outdoor advertising organisation

MCom (Applied Risk Management), North-West University, Vanderbijlpark CampusIn the South African context, the outdoor advertising industry is exposed, amongst other things, to operational, legal and compliance risks in terms of the various by-laws issued by different municipalities. This exposure requires outdoor advertising organisations to have robust risk management systems or practices supported by a sound risk culture. However, the risk culture literature lacks studies in this industry, as well as in unlisted organisations without formal risk management structures. In the present study, using the UARM Risk Culture Scale 2019 questionnaire, risk culture perceptions were compared between management (n = 35) and non-management (n = 83) groups in an unlisted outdoor advertising company that has a relatively flat organisational structure and that does not have a formal risk management department. The overall response rate was 79% (118/150). The management and non-management groups’ perceived levels of risk culture were compared using non-parametric (Mann-Whitney U) tests. The management group’s level of perceived risk culture was significantly higher than that of the non-management group. The results also indicated areas for improvement in the organisation under study. This study provides a starting point for further work in the broader outdoor advertising industry. It also offers opportunities for risk culture research in companies that do not have formal risk management structures.Master