Friday, 24 May 2013

Risk Culture;A Bureaucratic Burden?

You must be the change you wish to see in the world- Ghandhi 

                It is such that the world we live in , full of disaster, pain, suffering, injustice etc,  we find ourselves sometimes becoming angry and frustrated yet also passive and despondent. These emotions are ineffective in not only bringing about change but adding to the problem in the first place.
               This applies to our business world too. In order to encourage this change we not only need to look outside our business but internally too. Therefore, it's a must to constantly highlight that;

  • Transparent risk communication is KEY!! 
  • Manage risk down to the shop floor and support operational risk management. (Clear roles,responsibilities and who should participate in risk assessments is a good example). and
  • Adopt one Risk Management language/guidance/practice/tool that's adaptable to changing business circumstances.

In order to embrace and instill an effective Risk Management strategy a constant cultural change needs to take place.

I heard in a webinar on effective ERM that 'All employees need to become ‘small risk mangers’ –everyone needs to be aware of this, not just risk management function'. This is always a common problem, risk can't be passed on from one department to the next, it is everyone's responsibility, there should be no qualms about this and Risk Culture should not be seen as a 'bureaucratic burden' as highlighted in the webinar but rather a tool for great management. Riskperts will have to agree with me on this one. 

You must really be the change you wish to see in the world- Ghandhi

RISKercizing until next time...