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How do you foster a risk-aware culture in your team or organization?

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Risk management is not just a technical process that involves identifying, assessing, and mitigating potential threats to your projects or operations. It is also a cultural mindset that influences how you and your team approach decisions, communicate, and learn from failures. In this article, you will learn how to foster a risk-aware culture in your team or organization, and why it matters for your success.

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1 Why risk culture matters

A risk-aware culture is one that values openness, transparency, and accountability when it comes to dealing with uncertainty and complexity. It encourages people to share their concerns, assumptions, and feedback, and to learn from mistakes and near-misses. A risk-aware culture also supports innovation and creativity, as it allows people to experiment and test new ideas, while managing the potential downsides. A risk-aware culture can help you achieve better outcomes, avoid costly errors, and enhance your reputation and trust.

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Rachael P.

MBA MSc BA(Hons) MCMI MIoL Chartered MCIPD
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Fostering creativity and innovation is essential to maintain competitive advantage in todays unpredictable and fast paced external environment.

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Paul Anstey

CEnvH CertIOSH: Developing teams, improving culture and practice. Focused on sustainability, risk and governance.
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In my experience, the more wide spread the awareness is in an organisation the better the decisions are and the clearer people can be in expressing caution. That awareness allows people to take risk, and doesn’t limit commercial opportunities.

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Gaynor Corkhill

Compliance Manager at B Taylor & Sons Transport Limited
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We find getting our staff involved in identifying potential risks is a way of engaging them to take ownership of their own environment. We have regular toolbox talks, pop quizzes and our drivers who operate in an ever changing environment are issued with dynamic risk assessments to complete on new drops. This helps them realise the hazards they face and put their own control measures in place to reduce their personal risk. Our employees realise that we take their safety seriously and this goes a long way with them

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2 How to assess your current risk culture

Before you can improve your risk culture, you need to understand where you stand. You can use various tools and methods to assess your current risk culture, such as surveys, interviews, focus groups, observations, or audits. You can also look at indicators such as how often you review your risks, how you reward or penalize risk-taking, how you handle failures, and how you communicate about risks. The goal is to identify the strengths and weaknesses of your risk culture, and the gaps between your espoused values and your actual behaviors.

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Paul Anstey

CEnvH CertIOSH: Developing teams, improving culture and practice. Focused on sustainability, risk and governance.
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I spend as much time as possible looking at triangulating what I see at the top of the organisation with the actions on the ‘shop floor’ always assessing it against the documented policy/procedures that the top management sign off. That way I can establish how genuine the organisation is with regards to risk.

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3 How to define your desired risk culture

Once you have a clear picture of your current risk culture, you can define your desired risk culture. You can start by articulating your vision, mission, and objectives, and how they relate to risk management. You can also define your risk appetite, which is the level and type of risk you are willing and able to take to achieve your goals. You can then establish your risk principles, which are the guidelines and standards that inform your risk decisions and actions. You can also align your risk culture with your organizational culture, and ensure that they are consistent and coherent.

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4 How to develop your risk capabilities

To foster a risk-aware culture, you need to develop your risk capabilities, which are the skills, knowledge, and tools that enable you to manage risk effectively. You can develop your risk capabilities by providing training, coaching, mentoring, and feedback to your team and yourself. You can also use risk management frameworks, methods, and tools, such as risk registers, risk matrices, risk maps, or risk dashboards, to help you identify, analyze, evaluate, and treat your risks. You can also leverage technology, such as software, apps, or platforms, to automate, monitor, and report your risk activities.

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Walter Haydock

I help AI-powered companies manage cyber, compliance, and privacy risk so they can innovate responsibly | ISO 42001, NIST AI RMF, HITRUST AI security, and EU AI Act expert | Harvard MBA | Marine veteran
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If you are just beginning a risk management program, you should make it a quantitative one from the outset. There is strong evidence that "heat maps" and similar qualitative risk management tools obfuscate the situation and confuse people more than they helps (see "How to Measure Anything in Cybersecurity Risk" for details). Furthermore, you should begin calibrating your team members' risk measurement abilities, as they will improve steadily over time. For an overview of how to build risk measurement capabilities specifically in cybersecurity, check out my post on the topic: https://www.blog.deploy-securely.com/p/how-much-will-exploitation-of-a-critical

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5 How to embed risk culture in your processes

To foster a risk-aware culture, you need to embed risk culture in your processes, which are the routines, procedures, and systems that govern your work and operations. You can embed risk culture in your processes by integrating risk management into your planning, execution, and evaluation stages. You can also incorporate risk management into your governance, compliance, and assurance functions, and ensure that they are aligned and coordinated. You can also review and update your policies, procedures, and guidelines, and make sure that they reflect and support your risk culture.

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Walter Haydock

I help AI-powered companies manage cyber, compliance, and privacy risk so they can innovate responsibly | ISO 42001, NIST AI RMF, HITRUST AI security, and EU AI Act expert | Harvard MBA | Marine veteran
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A crucial aspect of embedding risk culture into your processes is ensuring you communicate using standard terminology. There are really only four ways to address risk: 1. Avoid 2. Accept 3. Transfer 4. Mitigate Require use of these terms as part of your risk processes so that everyone in the organization is on the same page. For a deep dive on each of these risk management methods, check out this blog post: https://www.blog.deploy-securely.com/p/the-four-horsemen-of-risk-management

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6 How to reinforce risk culture in your behaviors

To foster a risk-aware culture, you need to reinforce risk culture in your behaviors, which are the actions, attitudes, and habits that demonstrate your risk culture. You can reinforce risk culture in your behaviors by modeling, rewarding, and recognizing risk-aware behaviors, such as speaking up, sharing information, asking questions, challenging assumptions, and learning from failures. You can also discourage and address risk-averse or risk-seeking behaviors, such as hiding issues, blaming others, avoiding responsibility, or taking excessive or unnecessary risks. You can also communicate and celebrate your risk achievements, and share your lessons and best practices.

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How do you foster a risk-aware culture in your team or organization?

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3

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5

6

1 Why risk culture matters

2 How to assess your current risk culture

3 How to define your desired risk culture

4 How to develop your risk capabilities

5 How to embed risk culture in your processes

6 How to reinforce risk culture in your behaviors

Management

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How do you foster a risk-aware culture in your team or organization?

1

2

3

4

5

6

1 Why risk culture matters

2 How to assess your current risk culture

3 How to define your desired risk culture

4 How to develop your risk capabilities

5 How to embed risk culture in your processes

6 How to reinforce risk culture in your behaviors

Management

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