Elements and Improvement in Risk Culture Assessment

by Risk C. Enterprise Risk Management Consultant

Risk culture assessment

The risk culture is accepted as one of the organizational cultures and the Culture Assessment has been dominated by focusing on perceived risk behaviors. The risk culture has its limitations and it’s time to assess the risk culture that to look beyond the behaviors and they gave recognition to how the organization should determine the risk and the tools to be used. The effective risk culture is one of the very important tasks to execute the management.

This Culture Assessment risk is the glue that binds to all the elements related to risk management infrastructure, this is because it reflects the values, goals, practices, and the mechanism that will relate to the risk into an organization's decision making processes. The risk management framework has significant impacts on the risk culture of the organization. Risk review and compliance framework will be said to be as part of the best risk culture and it is said to be a powerful tool that will show a greater change in the organizational risk culture.

Elements in the risk culture:

· The elements of risk culture usually get vary depending on the type of organization country, market, and other regulatory environments in which they get operated.

· Here are some of the Culture Assessment elements listed below and they should be considered to leverage the changes and their impact on your organizational risk culture.

Governance:

The organizational board and the senior management should be very much clear about the risk Culture Assessment and there should be a communicable approach to the risk and that should be understood by every employee in the organization. Through this, the strategy of the business will be determined. The board should maintain the communication and decision making and the actions taken to avoid misinterpretation. Through this, the employees will get an idea of what they should do.

Training, planning, and talent management:

Through the training and planning the employees get supported and they enforce the desired culture and behavior while making the risk Culture Assessment decisions. Most of the organization shows interest in managing or in the hiring of best performance individuals to enhance their risk culture assessment.

They will also focus on the ability to perform the role, the attitude of the individuals to work and how will they fit into the immediate team of your company.

Competency:

The risk Culture Assessment should have the capacity to support your business strategy and that will be wilt around your competency. To get success you should know about the implementation of strategies and the organization culture. If you want to succeed you have to know about the risk culture that is being used by your clients.

How to improve risk culture?

Here are the steps that can help you to improve your risk culture assessment.

An integrated approach- standing along, such programs like communications, awareness campaigns and training strategies are very much important.

Periodical evaluation- monitors the behavior of the employee for the new trends, perceptions, or attitudes. Tracking qualitative and quantitative measures of the risk culture using indicators like:

· The effectiveness of governance processes and risk committee

· The risk evidence of business decision, taking the risk and solving technique into consideration

· Make use of risk appetite statement and the tolerance which you do the decision making

· Alignment and incorporation of risk are taken into strategic planning and direction

Prioritize the risk- executive management should support the desired risk culture through proper demonstration of desired behaviors by their actions and decisions over time. There should be periodical communication that should be contributed to by the organization's risk Culture Assessment.

We riskcom have the highest experiences consultants with the help of their advice you can get an effective culture assessment program. To know more about us you can call us or you may even visit our website to make them get cleared.