How Norwegians Manage Risk

Norwegians manage risk in one very simple way: by trying to avoid it at all costs. OK, perhaps that's not entirely true, but it does sometimes feel this way as you start working with Norwegians.

Physical Risk vs. Business Risk

Strangely, this risk aversion doesn't apply to all facets of Norwegian society. The typical Norwegian will take great risks in nature—long extended hikes in the middle of nowhere, cross-country skiing in the very cold snow, jumping in freezing lakes without much concern. And of course, after all those adventures they'll often consume alcohol at a rate that would send even the hardest partying American college kids to the hospital.

This type of risk is encouraged in Norwegian society, even admired. However, things are a little different when it comes to risk in business.

The Innovation Challenge

Today in Norway, there is much talk about innovation. There's even a government organization called Innovation Norway focused solely on it. There's just one big challenge: most companies, especially Norwegian companies, actually don't want it. They would much rather prefer the status quo and a profit margin that grows slowly over time instead.

The Tax Structure

This is partly due to how the Norwegian economy works. If you are very successful in business the government will take much of that success in the form of extremely high tax rates. This is so that wealth can be redistributed to others who are perhaps not willing to take such risks to succeed.

Life is good in Norway. Too good, actually! When everything is working so well, why take the chance to disrupt that?