Risk Culture building

Spreading and building a risk culture in a company, is like teaching someone to play a sport and then become good at that sport.
You start with basic fundamentals, you re-emphasize them (practice) on an ongoing basis and you explain key points and actions with 'lessons learned stories' (from numerous incidents) that provide feedback on good and/or bad consequences of their actions.
You then add in the tools people need so they are equipped to 'play the game' and next you begin adding in more comprehensive and organization specific information (policies, procedures, plans, regulations, roles, etc.). 
On an ongoing basis the company must be equipped to measure individual-level awareness and accountability and monitor feedback from
 ongoing risk assessments,
 incident reporting,
 risk teams,
 management, employees and
 third-parties.

The process of building and maintaining a risk culture can be challenging, but there are many excellent lessons learned that can help companies become successful in their environment to meet their company and individual needs and goals.
Generally, there are five levels of Risk Culture Maturity in a company. These are defined as follows:
In a bad risk culture, people will NOT do the right things regardless of risk policies and controls.
 
In a typical risk culture, people will do the right things when risk policies and controls are in place.
 
In a good risk culture, people will do the right things even when risk policies and controls are not in place.
 
In an effective risk culture every person will do something about the risks associated with his/her job on a daily basis.
 
In the ultimate risk culture every person is a risk manager and will evaluate, control and optimise risks to build sustainable competitive advantage for the company.



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