How to influence risk culture A brief description of the influencers of risk culture, and some examples of desirable and detrimental risk behaviours are provided below. Risk competence The collective risk management competence of the entity Proactive sharing of best practice • Desirable behaviours Consulting with others often • Reluctance to learn from past mistakes • Detrimental behaviours Following the herd • Organisation’s risk environment How the organisational environment is structured and what is valued Adhering to risk management policies, processes • and procedures Desirable behaviours Listening to others • Involving risk professionals in important risk decisions • Reluctance to escalate risks • Detrimental behaviours Minimising risks, optimism bias • Cutting corners • Motivation The reasons why people manage risk the way that they do Innovating and changing poor practices • Desirable behaviours Taking personal accountability for managing risks • Admitting to making mistakes • Shooting the messenger • Detrimental behaviours Avoiding responsibility • Rewarding excessive risk taking • Relationships How people in the entity interact with others Open and honest dialogue regarding risks • Desirable behaviours Constructive response to challenge • Inadequate challenge of excessive risk taking • Detrimental behaviours Yielding to inappropriate pressure from others •
How to influence risk culture A brief description of the influencers of risk culture, and some examples of desirable and detrimental risk behaviours are provided below. Risk competence The collective risk management competence of the entity Desirable behaviours • Proactive sharing of best practice • Consulting with others often Detrimental behaviours • Reluctance to learn from past mistakes • Following the herd Organisation’s risk environment How the organisational environment is structured and what is valued Desirable behaviours • Adhering to risk management policies, processes and procedures • Listening to others • Involving risk professionals in important risk decisions Detrimental behaviours • Reluctance to escalate risks • Minimising risks, optimism bias • Cutting corners Motivation The reasons why people manage risk the way that they do Desirable behaviours • Innovating and changing poor practices • Taking personal accountability for managing risks • Admitting to making mistakes Detrimental behaviours • Shooting the messenger • Avoiding responsibility • Rewarding excessive risk taking Relationships How people in the entity interact with others Desirable behaviours • Open and honest dialogue regarding risks • Constructive response to challenge Detrimental behaviours • Inadequate challenge of excessive risk taking • Yielding to inappropriate pressure from others
implementing-the-rm-policy.docx