Building Risk Culture
As risk is about uncertainty in facing the future, it would seem logical that a desirable risk culture would position the organization to be proactive as an early mover that quickly recognizes a unique opportunity or risk and uses that knowledge to evaluate its options, either before anyone else or along with other firms that likewise seize the initiative.
Such a culture would give management the advantage of time, with more decision-making options before shifts in the market invalidate critical assumptions underlying the strategy. Every organization is different. That is why it is important to evaluate risk culture and make necessary adjustments to shape it over time in response to change.
We organized a session on “Building Risk Culture” on 19 January 2018 which was attended by 30 risk professionals from the industry. Our speaker for the session was Ms. Liyana Ang an IERP graduate and the Chief Risk Officer in Berjaya Sompo Insurance Berhad. She has had over 20 years’ of in-depth experience in leading Risk Management, Operational Risk, Compliance, change management and internal audit functions in a breadth of local and multinational companies.
She highlighted measuring risk culture through a survey with categories listed (such as Towers Watson’s survey), appropriate risk-taking behaviours rewarded and encouraged, and inappropriate behaviours challenged and sanctioned, and transparent and timely risk information flowing up and down the organization with bad news rapidly communicated without fear of blame.
It was an interactive session as many participants were involved during the discussion and shared opinions and experiences among peers.