In the event of a crisis, time is of the utmost importance, and risk awareness is a must to respond strategically to it. A well-coordinated approach covering all stakeholders, Top-level management, and employees as well as synergy between various departments helps in mitigating the risk efficiently. In a Risk Intelligent Culture, everyone understands the organisation’s risk appetite and its approach toward risk management and aligns their individual responsibility with the organisation. A Risk Intelligent culture helps strengthen organisational processes, increases resilience, and gives a competitive advantage to the organisation in the long run.
Why is Risk Aware Culture important?
Culture eats strategy for breakfast” Peter Drucker
A Risk Intelligent culture can better facilitate, incorporate and co-ordinate risk mitigating strategies within the organisation. Risk Awareness entails the general awareness among key stakeholders and the behaviour of employees within the organisation. A Risk Intelligent culture in an organisation leads to risk-intelligent processes, norms, and structures. It is better equipped to deal with risks and efficiently respond to crisis situations. It helps in risk-intelligent decision-making, minimised financial and operational losses, and fosters long-term resilience.
Steps to Build Risk Risk-Aware Culture
- Understanding the current risk culture and identifying the ideal risk culture
- Analysing the current practices and risk appetite of the organisation with respect to the potential risks.
- Defining the organisation’s risk management goals and aligning them with long-term goals.
- Identifying ideal risk culture and establishing standard protocols, key performance indicators, and key risk indicators.
- Leadership Commitment
- Top-level leadership should incorporate risk intelligence processes in business operations and strategies; and facilitate communication from bottom to top.
- They should ‘lead by example’ and foster a risk-intelligent culture within the organisation.
- Clear Communication with all stakeholders
- Clear lines of communication to be established within internal stakeholders – top-level management and employees as well as external stakeholders – third-party contractors and clients.
- Communicating organisational goals and expected attitudes and behaviour helps in establishing accountability.
- Conducting Risk Awareness programmes
- Educating employees and other stakeholders about various risks and risk management strategies helps in building risk awareness.
- Formulating Risk Management Framework
- Formulating a holistic Risk Management framework covering all the risks the organisation faces, and the risk-mitigating policies and procedures as well as risk assessment processes.
- Incorporating risk management in business processes to have seamless risk-intelligent operations.
- Continuous Monitoring and Reviewing
- Continuous monitoring of evolving risks and analysing its impact.
- Conducting risk audits and assessments of current practices, identifying gaps and loopholes, and establishing feedback mechanisms.
- Fostering a ‘No Blame’ Culture
- Promoting transparency and proactive problem-solving within the organisation to ensure positive accountability.
- A no-blame culture encourages better reporting of risks and gaps and ensures a timely intervention to establish risk-intelligent processes.
Thus, a Risk Intelligent Enterprise embodies a risk-aware culture that provides both – stability and competitive advantage to the organisation. Fostering risk awareness is an ongoing continuous process that needs to evolve with changing times and security landscape. Partnering with experts in risk consulting can help organisations in the journey toward becoming a risk-intelligent enterprise.
Take your First Step towards becoming a Risk Intelligent Enterprise with Mitkat
Mitkat offers a variety of services including Risk Consulting and Security Design which helps organisations to develop risk intelligence and build robust Risk Management Framework. Tailored risk analysis and risk-mitigating solutions help organisations navigate evolving security landscape and complex risks. Our comprehensive solutions, including Risk consulting and Security Design, Protective Services and cyber security services ensure organisations remain safe and secure; and build sustainable resilience.