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- Keshav Ram Singhal
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Blog on 'Quality Concepts and ISO 9001: 2008 Awareness' at http://iso9001-2008awareness.blogspot.in

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Monday, November 28, 2016

Build A Risk Culture In Your Organization


Build A Risk Culture In Your Organization

If you wish to build a risk culture, organize a 'Building A Risk Culture Awareness' program (lecture series) in your organization and motivate all employees to answer the question 'What can go wrong at my desk/job function?' Compile information and address all relevant risk issues. This will facilitate in building a risk culture.

Risk-based thinking must be adopted in every organization.

Decision making should be on the basis risk-based thinking. Define unacceptable to desired in every process. Identify and critically prioritize the mechanisms that can influence the behaviour of employees to adopt risk-based thinking. Enforce risk-based thinking in the organization's activities as usual activities. Leaders (top management) need to continually live and breathe the risk-based culture values.

All the best,

Keshav Ram Singhal




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1 comment:

  1. UnknownJanuary 9, 2017 at 11:38 AM

    No two people will respond the same way to a situation of risk, the way any person responds to risk is influenced by a number of factors, the main ones are:

    • Nationality & culture
    • Childhood experiences (and formative environment)
    • Work ethics, trust & honesty
    • Education (and the way it was obtained)
    • Work experience
    • Religion and other spiritual thinking
    • Attitude towards life (and death)

    Risk practitioners generally failed to address these underlying human aspects. Since the publication of the Basle accord, ISO 31000 and other standards and regulations, it has often been argued that compliance with these standards and regulations will mitigate and control risk, but this is only true if the standards and regulations are embraced in an effective Enterprise Risk Management Culture. Just like the policies, procedures and systems, these are worthless if human attitude, acceptance and desired response lack.

    Addressing the aspect of people risk is the only way an organisation can improve the results of how their people respond to a situation of risk and the effectiveness of their risk management function. No organisation can ever have a perfect risk management culture, but organisations can achieve a level of maturity where they have an effective risk culture process and every employee is risk-minded and does something on a daily basis to mitigate, control and optimize risk

    The development of Risk Culture Building is focused on awareness and training in business ethics and human behaviour, as mentioned, both the behaviours we want to encourage and the behaviours we want to avoid. Organisations should frequently evaluate the progress (or regress) they are making on the path to maturity and implement action plans.

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