Cultivating a risk intelligent culture
Organisations wishing to better manage risk should consider establishing a Risk Intelligent culture. There is no ‘one size fits all’ solution to risk management, and this is especially true in the financial services industry where significant risk-based decisions are being made throughout organisations on a daily basis.
To a large degree, an organisation’s culture determines how it manages risk when under stress. For some organisations, their risk culture is a liability. For others, it facilitates both stability and a competitive advantage. To that end, an organisation wishing to cultivate a Risk Intelligent culture should first understand and measure its existing risk culture.
Key characteristics of a Risk Intelligent culture include:
- Commonality of purpose, values, and ethics
- Universal adoption and application
- A learning organisation
- Timely, transparent, and honest communications
- Understanding of the value of effective risk management
- Responsibility — individual and collective
- Expectation of challenge.
Read the report in full for practical advice on how to measure, strengthen and report on risk culture.