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RISK TAKING PROPENSITY

INTERNATIONAL NEGOTIAT

PRESENTED BY:

Lakshay Batra(138)

Jatin Dhall(132)

Jithen KP()

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WHAT IS RISK TAKING PROPENSITY

Risk taking propensity means the degree to

which an entity is willing to take chances wrespect to risk of losses.

WHAT IS INTERNATIONAL NEGOTIATI

International negotiation is as it says: inter-national. It is about negotiation betweencountries.

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RISK TAKING PROPENSITY IN

INTERNATIONAL NEGOTIATION

Risk taking propensity can be hence definwillingness of a country to take a risk negotiation being done among the two different countries on a particular issue. Intnegotiations happens between individucompanies also, where the traps and tricksborder negotiation can ensnare even

experienced home-country negotiators

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Impact of good or bad negotiation can directlyaffect revenues and sales.

Negotiation skills helps you resolve situationswhere what you want conflicts with what somelse wants.

Negotiation aims to explore the situation to finsolution that is acceptable to both parties.

Styles of negotiation depends on the circumsta

IMPORTANCE OF NEGOTIATIO

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FACTORS AFFECTING CROSS CULT

NEGOTIATIONS

1.Negotiating Goal and Basic Concept

2.Protocol

3.Communications

4.Risk-Taking Propensity - Uncertainty Avoidance

5.Power Distance

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NEGOTIATING GOAL AND CONC

How is the negotiation being seen? Is msatisfaction the real purpose of the meetingwe have to compete? Do they want to Different cultures stress different aspect

negotiation. The goal of business negotiationbe a substantive outcome (Americans) or a llasting relationship (Japanese).

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RISK-TAKING PROPENSITYThere is always risk involved in negotiation

final outcome is unknown when the negotcommence. The most common dilemma is relpersonal relations between counterparts: Shotrust them? Will they trust us? Certain cultu

more risk averse than others, e.g. Japan. It mealess innovative and creative alternatives are avto pursue during the negotiation, unless thestrong trust-based relationship between

counterparts.

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NEGOTIATION

Negotiating Goal

(Contract

OrRelationship)

Negotiating

Attitude

(Win-Win

Or

Win-Lose)

N

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NEGOTIATING GOAL

CONTRACT OR RELATIONSHIP

Negotiators from different cultures may tend tthe purpose of a negotiation differently. Fomakers from some cultures, the goal of a bunegotiation, first and foremost, is a signed cobetween the parties. Other cultures tend to cothat the goal of a negotiation is not a signed cobut rather the creation of a relationship betwe

two sides

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NEGOTIATING ATTITUDE

Because of differences in culture, personality, business persons appear to approach deal makone of two basic attitudes: that a negotiation isprocess in which both can gain (win-win) or a

in which, of necessity, one side wins and the oloses (win-lose). Win-win negotiators see dealas a collaborative, problem-solving process; wnegotiators view it as confrontational

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TYPES OF RISKS INVOLVED

The three major risk types are:

Enterprise riskRisk related to the operation of a businessstrategy, systemic issues, material issues, etc.

Project riskRisk related to the planning and delivery of aor service and not being able to meet project triple constra

scope/quality, schedule, cost (including technology) Process riskRisk relating directly to planning and deliver

product or service and not being able to meet 1. stability, 2capability, 3. improvement criteria, also the inability to achconsistent outcomes.

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There are two aspects of risk that must be considwhen making a decision

those that can be controlled, and

those that cannot be controlled.

In the moment of decision making, the best thinyou can do is the right thing, the next best thingthe wrong thing and the worst thing is doingnothing.

TYPES OF RISKS INVOLVED

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