How do you encourage risk awareness and responsibility in your team?

1 Define risk appetite

Before you can encourage risk awareness and responsibility, you need to establish a clear and consistent definition of what risk means for your team and your organization. What are the goals, values, and priorities that guide your risk-taking? What are the acceptable and unacceptable levels of risk that you are willing to tolerate? How do you measure and monitor risk performance? Communicate these criteria to your team, and align them with the overall risk strategy of your business.

2 Involve your team

Risk awareness and responsibility are not only top-down processes, but also bottom-up ones. Your team members are the ones who face the risks on a daily basis, and they have valuable insights and feedback that can help you improve your risk management. Involve them in identifying, assessing, and mitigating risks, and encourage them to share their opinions and suggestions. Listen to their concerns and questions, and provide them with the necessary support and resources.

3 Promote learning

Risk awareness and responsibility are not static, but dynamic skills that require continuous learning and improvement. Your team needs to learn from both successes and failures, and use them as opportunities to enhance their risk knowledge and competence. Promote a culture of learning in your team, and provide them with regular training, coaching, and feedback. Celebrate their achievements, and help them overcome their challenges. Encourage them to seek new information, perspectives, and experiences that can broaden their risk horizons.

4 Reward risk behavior

Risk awareness and responsibility are not only rational, but also emotional skills that depend on motivation and confidence. Your team needs to feel that their risk efforts are recognized and appreciated, and that they have the autonomy and authority to make risk decisions. Reward your team for demonstrating risk behavior, and acknowledge their contributions and impact. Provide them with incentives, recognition, and feedback that align with their risk appetite and performance. Empower them to take ownership and accountability for their risk actions.

5 Lead by example

Risk awareness and responsibility are not only individual, but also collective skills that depend on trust and collaboration. Your team needs to see that you are a role model of risk management, and that you support and inspire them to follow your example. Lead by example in your team, and show them how you apply risk principles and practices in your own work. Communicate your risk vision and values, and demonstrate your risk attitude and actions. Foster a positive and supportive team climate, and encourage teamwork and cooperation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?