Three Stages to Improve Risk Culture Assessment

The organizations will develop the risk culture and that can vary from one to another but certain features are common in all organizations. The structural implementation and the operation of risk and compliance framework are very important, having an appropriate risk culture assessment which aids a transition from mere compliance to something very useful; to your organization. And this risk management will help you in creating new opportunities for your organization. The risk management framework and the risk culture are inhibiting profitable and growth making decisions for your organization.  

The risk culture influences each organization in different ways, here the board, risk management, and the human resources department are actively engaged on the topic and also in determining the approach.

Stages for improvement of the risk culture in the organization 

Improving the risk culture assessment will give you several benefits and it can be separated into three stages, they are;

• Cultural awareness
• Cultural change
• Cultural refinement 

Building cultural awareness 

In this stage, the companies are establishing their expectations in the risk management for the organizations and defining their roles and responsibilities around the risk. Building cultural awareness includes;

• Clarifying the risk management responsibilities and the accountabilities
• Refining the recruitment methods that are to include the risk management capabilities
• Using a common risk management vocabulary delivering the leadership communication
• Conducting the risk management education and provide customized training programs on staff roles
• Embedding risk management into the onboarding programs

Change in organization culture

The organizational approach and embrace the cultural change stage. Risk culture change will help you in improving your organization. Some of the important components of changing an organizational risk culture are;

• Reinforcing behavioral and compliance standards
• Establishing the risk management considerations in talent management processes
• Fix the risk performance metrics into the motivational systems

Refining the culture

The organizations are getting more experienced in their cultural development and they are trying to monitor the cultural performance versus the expectations. And the expectations are set by the various holders including the employees, investors, and analysts. Steps were taken during this stage include;

• Refining the risk performance that is to reflect the changes in business strategy, risk appetite, and tolerance
• Integrating the risk management lessons and education
• Holding the people accountable for action
• Redeploy the individuals that are to reflect the changes to the business strategy and their priorities 

If once the desire risk culture assessment has been established, the organization should continuously refine it that is to reflect the ongoing changes in the business strategy. 

We, Riskcom are hired with the professional experts they can diplomatically help you to support your organization in making the effective risk culture assessment. For further details or information call us or visit our website page.