Risk culture in the South African fast food industry : commonality of purpose in one organisation

MCom (Applied Risk Management), North-West University, Vanderbijlpark CampusThe South African food industry suffered major financial and reputational damage at the time of the 2017–2018 listeriosis outbreak. This outbreak heightened concerns around health and food safety standards, and predominantly brought to light the review of industry risk management practices. To interrogate some of the shortcomings of the industry, this study explored the prevailing risk culture within one organisation and how it significantly affected how well or how poorly risks were managed. It also reports on the potential and perceived value that a centralised specialist risk management department within a fast food organisation could add to the organisational risk culture. In this exploratory study, an interview-based data collection approach was used. The data were collected in the organisation through semi-structured, one-on-one interviews with twelve managers at two different work levels. The study found that the organisational culture directly influenced the risk culture and that these were co-dependent. It also found that there was a mutual and common understanding of purpose in both cultural contexts among the managers. This fast food organisation had operated for over 30 years without a specialist risk management department; hence managers were reluctant about the idea of establishing such a department. Because the organisation had a prominent departmental risk culture, however, managers were open to discussions that could improve current risk mitigation measures, and suggested, cautiously, that a risk management system that is aligned to the organisational culture and strategy could be implemented and be inclusive of significant role players of different departments. The study provoked thought around whether the common structural make-up of many corporate organisations’ risk management systems would be best suited for a fast food organisation. It also brought about discussions around how risk management is viewed and approached in the industry.Master