Abstract
This paper examines a problematique of risk management on organization systems referring to Niklas Luhmann's risk theory. Luhmann focuses on 'second-order' observations of how risks are explained rather than first-order observations of risk existence. And he propounds the distinction of risk/danger. We apply these ideas to organization systems, in which risks are observed very easily. Recently, to elude risks of organizational decisions, organization systems are building risk management systems into organizational "structure", which distinguishes organizational decisions with others. Most risk management systems correspond only to first-order observations of risk/security. Therefore, whenever unexpected damages happen, risks of risk management systems are observed and its reconstruction is claimed. Furthermore, reinforcements of risk management systems may be more promoted, since introductions of risk management systems have effects on escalation of observation of risks. However, reinforcements of risk management systems themselves can be a risk, because it is observed to be accompanied by dysfunctions of decision making delay, inflexible action, and avoidance of innovation. To avoid such a situation, It is necessary to design second-order risk management which intend to influence distinction of risk/danger. As a clue of such second-order risk management, we can refer to discussions about corporate governance. In recent reformation of corporate governance, we can find a function of management on shareholders' observations of risk/danger by employing embedded institutions, which all organization systems do not always have.
