Risk Culture can be described as
“….. the value and belief, knowledge and understanding of RISK
shared by a group of people with a common purpose…”
These are our 8 Top Tips to embed a good Risk Culture within your organisation:
1. Distinct and consistent tone from the TOP
It is important that the leadership teams take the first stance on risk culture and feed it down to the rest of the organisation with clear and consistent messaging.
2. Commitment to risk management principles and processes
Remaining proactive and dedicated to risk management will ensure objectives are met and operational resilience is upheld.
3. Ensure transparent and timely flow of risk information up and down the organisation.
Timely communication is key with regards to risk management, to ensure any changes or updates are communicated appropriately.
4. Wide acceptance of risk management.
When everyone is on board with risk management, employees at all levels are more attuned to potential problems. This vigilance can help identify and address threats before they escalate.
5. Risk management skills should be valued, encouraged and developed.
Risk management skills are essential for setting realistic goals and developing effective strategies. A good understanding throughout the organisation of potential risks allows for creating contingency plans and adapting to changing circumstances.
6. Encourage risk reporting and whistleblowing.
Whistleblowers are often the first to identify and report illegal activity, fraud, or corruption. Whistleblowing can act as a deterrent of wrongdoing and shows a commitment to transparency and ethical conduct. This can help build trust with employees, investors, and the public and can help identify threats to the organisation.
7. Properly resourced risk teams.
With adequate resources a risk team can identify potential threats before they materialise and this allows for preventative measures to be taken. A well-equipped team can analyse situations, assess the likelihood and impact of various risks, and present this information to decision-makers. This empowers leaders to make informed choices that consider potential pitfalls.
8. Actively learning from risk events and near misses.
By analysing these close calls, you can identify weaknesses in your existing risk management strategies. This allows you to take corrective actions and prevent similar situations from escalating into full-blown incidents. The data gleaned from these events helps you get a clearer picture of the overall risk landscape within your organisation.
Just a final tip – remember LILAC!
L is for Leadership – Senior Management should be promoting a risk-aware culture
I is for Involvement – Everyone across the organisation should be involved
L is for Learning – Offer training and risk workshops
A is for Accountability – Risk culture should be based on accountability, not blame
C is for Communication – Top down – reports should be welcomed and well-received
Check out our webinar on risk culture and stakeholder engagement
