How do you create a risk culture?
Creating a risk culture requires a combination of top-down and bottom-up approaches. At the top, senior management must set the tone by communicating the importance of risk management and establishing a risk management framework. This should include clear policies and procedures, as well as a system of checks and balances to ensure that risks are identified, assessed, and managed appropriately.
At the bottom, employees must be educated and trained on the importance of risk management and how to identify and manage risks. This should include regular risk assessments and reviews, as well as a system of rewards and recognition for employees who identify and manage risks effectively. Finally, it is important to create an environment where employees feel comfortable discussing risks and where risk management is seen as a normal part of doing business.