How do you align risk culture with your values?

1 Why values matter

Values are the foundation of your risk culture. They define what is important, what is acceptable, and what is expected from everyone in your organization. They also help you communicate your risk appetite, the level and type of risk you are willing to take to achieve your objectives. By aligning your risk culture with your values, you can create a consistent and coherent approach to risk management that supports your strategy and vision.

3 How to design your risk culture

Once you have assessed your risk culture, you can design your desired risk culture, the one that reflects and reinforces your values. You can do this by defining your risk culture objectives, the specific outcomes you want to achieve in terms of risk awareness, risk behavior, and risk performance. You can also define your risk culture indicators, the measurable and observable factors that show how well you are meeting your risk culture objectives. These indicators can include metrics, such as risk exposure, risk incidents, and risk responses, as well as qualitative aspects, such as risk attitudes, risk perceptions, and risk feedback.

4 How to implement your risk culture

After you have designed your desired risk culture, you can implement it by developing and executing a risk culture action plan, a set of activities and initiatives that aim to change and improve your risk culture. You can do this by aligning your risk culture with your organizational structure, processes, and systems, such as governance, policies, procedures, and tools. You can also align your risk culture with your human capital, such as leadership, culture, competencies, and incentives. By doing so, you can ensure that your risk culture is embedded and integrated in every aspect of your organization.

5 How to monitor and review your risk culture

Finally, you can monitor and review your risk culture by measuring and evaluating its progress and performance. You can do this by collecting and analyzing data from your risk culture indicators, as well as from other sources of feedback, such as audits, reviews, and reports. You can also compare your actual risk culture with your desired risk culture, and identify any gaps or deviations that need to be addressed. By doing so, you can ensure that your risk culture is aligned with your values, and that it is adaptive and responsive to changes and challenges.