How healthy is your organisation's risk culture?October 2012
|Leaders are well versed in the area of risk management but few organisations have been able to adequately measure their risk culture. Despite the many millions of dollars that have been invested in risk management systems and resources, risk systems continue to fail around the world, with disastrous consequences. These failures have often been a result not of the technology and systems, but of a poor risk culture.|
Can your organisation confidently answer this important question: "Is the organisation's culture, both overall and in each area, sufficiently robust to ensure that all significant risks are identified and appropriately managed?"
Measurement tools such as Insync Surveys' Employee Risk Culture Survey determine the "health" of an organisation's risk culture and how their risk culture could be improved. It can be an important part of a risk assessment process that identifies weaknesses and areas for improvement in an organisation's risk culture and risk management practices. Conducting the survey also sends a message to employees about the importance an organisation places on having an appropriate risk culture and appropriate risk behaviours.
We've carried out risk reviews incorporating risk surveys and consulting advice for organisations, boards and management teams. Our risk reviews have included:
- the risk culture of the business units and risk division of a large insurance company and of a government health department
- the risk management effectiveness of a state treasury corporation
- a firm-wide risk management effectiveness review of an Australian big four accounting firm
- the health, safety and risk culture of a large port authority
- the global cyber security risk review for a large mining company in relation to its process control systems
- the effectiveness of the audit and risk committee of a credit union from a risk perspective
- the effectiveness of a "big four" bank's board risk committee
- a bushfire risk, emergency management planning and preparedness self assessment tool for two state government departments.
The buck stops with boards, CEOs and senior management to ensure an appropriate risk culture is maintained. An independent review of an organisation's risk culture will identify actions for improving the effectiveness of an organisation's risk culture and risk management practices.
More information about measuring risk culture: