Risk Culture Under the Microscope: Guidance for Boards

Folks…It is Day 3 of Risk Culture Week. What do we have in our bag today? Well, something interesting that should help you navigate your risk culture journey, of course!

 

In 2012, the Institute of Risk Management released a board guidance on risk culture which remains highly relevant nowadays. This report offers practical advice on developing a good risk culture, starting with attitudes and behaviours.

 

Why read this?

The IRM issued this document 2 years before the FSB drafted their position and it can be considered as ‘practitioner-led’ approach (as opposed to ‘regulator-led’).

 

The Guidance Document proposes a simple and accessible model that helps organizations ask some basic questions of themselves and their risk culture, such as:

  • What does a good risk culture look like?
  • Why is risk culture so important?

 

In fact, they have “ten questions a board should ask itself” as a practical way of kick-starting risk culture conversations inside an organization. The practical elements are nicely offset by some models and processes which set out a typical risk culture evolution journey. Since risk culture is a journey, the Guidance Document concludes by providing practical steps to change the current risk culture. ­

 

Definitely, something to read through and part of the IRM’s free to access resources. Download it from them here:

Download the report here
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Institute of Risk Management (2012)

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