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Risk Culture and Awareness
Is your risk management training sufficient to build a strong risk culture?
- What would you improve?
- How would these changes benefit your industry?
- How would these changes enhance your regulatory reporting?
- What changes are needed to effectively and meaningfully engage your board members and Risk/Audit/Compliance Committees?
5 answers
To build a strong culture, you must first identify the current culture. This can be accomplished through surveys and a combination of focus groups, with all levels of employees. Next step is to determine the culture you desire and build on your existing strengths.
Building a sustainable culture must start with senior leadership and the other leaders will follow. An excellent example is Tesla’s Elon Musk. When Musk became aware that serious injuries were occuing and employees believe the culture was no leaders cared, Musk assumed ownership. He communicated to all employees, through several mechanisms. He put in a policy, he would be immediately notified of all injuries and he would personally assist in the investigation. Ensuring real root causes were identified and more importantly, helping to find sustainable solutions.
The BOD was informed of the unacceptable safety performance and kept engaged in the solutions being implemented.
Risk reduction management is an ongoing thing. It must occur through education experience. however, risk reduction must be specific to a given risk. For example, the risk reduction approach for natural occurring events such as flood or wildlife different. Such as water flow control versus hazardous fuel management. However, the two risks have a common element of public education and outreach. Effective risk reduction occurs through defining the risk; identifying specific things that can mitigate the risk; and the education and train people that could be impacted.
Yes, I have done it, even though most clients never realize that it has happened. I work with the president, chairperson and the board of directors and/or executive committee.
My entry is via risk management and safety programs that require the board to approve: scope of services and annual or project budget.
I am an organic gardener who plants seeds and saves seeds for the next season.
My seeds are planted at the board level and every department manager as assignment's course takes me. I at every opportunity, initial seed is one of hope and planning: "My risk management is a prevention platform that includes prevention, loss control, safety, risk transfer and risk reduction. For those accidents and injuries that will happen, sound, prompt and professions claims management must be ready and eager. In addition, prompt reporting of the happening with complete details is required and claim modification, return to work and early settlement are to be used."