How do you involve staff in risk management?

Here are several strategies for involving staff in risk management: 1. Provide comprehensive training and awareness programs to educate staff. 2. Clearly communicate the organization's risk management objectives, strategies. 3. Establish a culture where staff are encouraged to report security incidents etc. 4. Engage staff in the risk assessment process. 5. Empower staff to take ownership of risk management. 6. Foster collaboration between different departments and teams to ensure a holistic approach to risk management. 7. Recognize and reward staff who actively contribute to risk management efforts. 8. Establish mechanisms for collecting feedback from staff on the effectiveness of risk management processes.

Defining roles and responsibilties in risk management (RM) is crucial for ensuing the every team (Department level) and team members (individual level) of the organisation understand their part in RM. First define the RM Framework and RM policy. Take buy in from Top managemnt and then guide the operational level managers to follow the same. the broad framework and policy should include the risk appetite and ensure RM is integrated in strategic planning and decision making.

I think we need to define what is meant by "high pressure environment" - is it paucity of time, is it dealing with equally strong conflicting viewpoints, is the implication of not taking a decision monetary, regulatory or otherwise, evaluating what is at stake. Also, since the topic says "informed" decisions, the process starts with data. What does data point towards? Layer that with your subject matter expertise. By doing this, you get a simple 2×2 matrix where data backs your judgement or vice versa. Where data backs your expert judgement, by all means go ahead. The issue is when there is a conflict between the two. At that point, please go by your expert judgement. And remember, in high pressure situations, do what is RIGHT.

We help our staff to see that it is up to each of us to manage risks. When reviewing accidents or near misses, we look at the circumstances surrounding the incident. So instead of blaming the injured employee or one department, we try to identify that it is the culture that leads to (or not) safe decision making which impacts everyone. For example. on rainy days, everyone looks for ways to prevent slip and falls-such as keeping the floors dry by changing the door mats and having visitors use plastic bags for umbrellas. Also having housekeeping making more frequent rounds and enforcing the slip resistant footwear in the dress code policy helps eliminate the chance of a slip and fall from occurring.

I agree, First step to Risk management is Risk awareness. At individual level this awareness has to be inculcated. How can this be done? Role level risks after discussion with Management for that team has to be studied, noted and shared with peers so every individual can contribute. This awareness should be deep dived at a level where like a reflex every individual during their day to day activities can identify, evaluate and highlights risk along with ways to mitigate the same.

Establishing a risk culture within the organisation is the key to success. There has to be consistent plans to spread risk culture through trainings, interactive workshops, mentoring, preaching and reward people who demonstrate best risk practices. This risk culture starts from Board’s risk management committee and travels downstream through top management’s respect to risk culture. Good governance structure of risk management supported by well defined policies and action oriented risk management committees will provide result driven outcomes. There must be clear defined roles & responsibilities of ‘3 lines of defences’ in risk management: first line (front liners), second line (risk & operations management) and third line (audit).

Everyone in a company is responsible for risk management. A reputational risk for example could be identified by the sales team with basic training, which could save the company a significant amount of money. This is mitigation through awareness. So, everyone in a company should have basic and recurrent risk management training to create a risk-averse culture within the company.

Provide incentives for staff to get involved in risk management through risk based reward and recognition programs and introduce risk champions across every business to promote risk and improve participation.

Define roles and responsibilities of each individual , this is One of the first steps to involve staff in risk management is to define and communicate their roles and responsibilities in the risk management process. Apart from providing them basic training and support as and when needed.lastly most important seek regular and timely feedback

Create Risk Champions: Identify individuals within various departments to act as risk champions. These individuals can help to promote awareness and understanding of risk management within their respective areas. They can also act as a bridge between their department and the risk management function, ensuring that risk information is effectively communicated both ways.

Making employees part of risk management is vital, yet underrated. In my opinion, this is about making sure they see risk management activities as a value add activity for them and the firm, not another todos. For example, I received feedback from employees deep in the tranches that they were approaching RCSA as a task they needed to get down ASAP to tick the box. They provided "0" intelligence, they only followed the process.

I agree with you. In my experience, collaboration and brainstorming with team members during risk sessions with stakeholders also helps to create a sense of ownership of risks among staff. Yes, I believe that when they feel responsible for identifying and mitigating risks, they are more motivated and engaged in the process. This leads to more effective risk management outcomes and a stronger risk culture.

This is a brilliant suggestion, however like the saying goes too many cooks spoil the broth. Experienced senior members committee should guide the way, they can internally seek inputs, collaborate - and then pass on inputs and feedbacks to system put in place.

Absolutely, establishing a culture where stakeholders feel encouraged to contribute their opinions, suggestions, ideas, and feedback concerning risk management activities is integral. However, it holds greater significance for senior management to actively ensure the integration and effectiveness of this culture within the organization. Senior management plays a pivotal role in fostering an environment that values and incorporates diverse perspectives on risk management. Encouraging open communication channels and recognizing the significance of stakeholder inputs can significantly enhance an organization's risk management strategies and overall resilience.

Encouragement: Create a culture where staff are encouraged to bring up potential risks in discussions and decisions. This could be supported by a feedback system or incentives for active participation. Collaboration: Engage different departments and levels of the organization in risk discussions. This cross-functional collaboration can help to ensure a more comprehensive and holistic view of risks affecting the organization.

Communication of the risk management process and outlining its importance and impact can be displayed through reporting, discussion, visual analysis, real life examples of impact. The main point is to make it real and demonstrate why it matters and how what they do impacts. When people feel involved, heard and accountable then you have positive involvement.

In a trading firm, fostering a culture of open communication is key for effective risk management. We should encourage every team member to share insights and concerns through our dedicated communication channels, like our internal forum and messaging app. Regular updates on risk management efforts should be shared to keep everyone informed and involved, inviting suggestions to enhance our strategies. This approach ensures quick identification and mitigation of risks, harnessing our collective expertise to navigate market uncertainties more effectively.

In my experience awareness does not inherently equate to understanding. At its core, risk management requires a simple understanding of ‘why’ something is done in a certain way and ‘what’ outcome is expected [or to be mitigated]. The greater one’s understanding is of the “why”, the higher the likelihood of successful buy-in and positive engagement. Communication from the business should be focused on establishing the “5 W’s” + ‘H’, rather than overloading staff with the focus of unnecessary extra admin or procedures. Risk management is practiced everyday by everyone, not a select group of professionals on paper.

Once the risk team has a detailed risk profile of each department, those must be communicated to the respective Heads of Department and the senior management. Those risk profiles must be updated annually or whenever a material change is deemed to have occurred. These updates are expected to be executed by the departments themselves as their staff becomes increasingly more risk-aware and experienced in managing risk processes. In those cases, the risk team's role is to review the update results and challenge them as deemed necessary. On an ongoing basis, any incidents occurred must be analyzed and reported to the risk team in terms of their root cause, impacts and potential mitigation measures to prevent their occurrence in the future.

Reward and recognize employees who contribute significantly to risk management. Implement recognition programs to acknowledge staff efforts in identifying and mitigating risks. Develop incentive schemes to motivate proactive risk management behaviors. Celebrating successes and rewarding contributions reinforces a culture of shared responsibility and continuous improvement, ensuring ongoing commitment to effective risk management.

It would help if recognition, analysis and resolution of organisational risks is set up as a clear goal to work on as part of the appraisal process. This can help in getting everyone to look at risk more closely leading to higher chances for recognition of new risks and lead to more suggested options for solutions. This would also help to analyse risk as team work and as a shared responsibility rather putting the onus on any one department.

Incorporate risk management performance into employee evaluations with SMART Goals. Recognize and reward employees who demonstrate strong risk management skills and contribute effectively to the organization's risk management framework.

Acknowledge and reward staff members who actively contribute to the identification and management of risks. Recognition programs can motivate employees to actively participate in the risk management process.

In addition, mature organisations link Risk Management in compensation score cards for everyone (from CEO down to graduates). Risk Management is everyone’s responsibility. Consequently, effective Risk Management practices should be rewarded. Avoidable risk incidents and control breaks should be reflected in performance management.

4 golden rules to involve staff in risk management - - Regular trainings - Clearly defined roles/matrix, - Authority with responsibility - Encourage honest feedback without fear of retribution.

ERM can be overcomplicated quickly and, as such, implementation can feel like a daunting task. Here are some considerations to help gain C-Suite buy in and overall implementation: 1. Strive for incremental, continuous improvement rather than a risk management remodel. Review your current risk management process and find simple means of bridging the gap, such as risk awareness communication and routine stakeholder collaboration. 2. Embrace the gray space. Remember that ERM, at its core, is a way of looking at risk and realizing that not all risk is black and white. Learn to find comfort in the discomfort and keep an eye out for opportunities. 3. Keep your KPIs and KRIs realistic and useful. Anything else dilutes the system’s credibility.

The risk manager ability to communicate with the senior managers/Board and the broader staff on the risk management methodology, expectations, key risks and performance indicators is most critical. In many organisations, very often the only person who is actively, passionately and ferociously "involved" in risk management is the risk manager himself. Effectively communication requires not so complicated framework, common language and a clear outcome/vision how risk management will bring upon to the organisation. Once these are agreed, a roadmap can help guide the maturity of the organisation in managing its risk. Last but not least, rigorously challenging the risk assessment performed and fine-tuning the it ensures sustainability.

Involving staff in risk management is key to fostering a culture of risk awareness and collective responsibility within an organization. One effective approach is to conduct regular risk management training sessions that educate staff on potential risks, their indicators, and the procedures to follow when they are identified. Additionally, incorporating risk management responsibilities into job descriptions and performance evaluations reinforces the importance of each employee's role in risk mitigation.

I find that one of the best ways to get staff involved is to be part of the solution. Help shoulder the burden of action to get the right outcomes so that everyone learns from the experience, including the "Risk Professional" - understanding how things work in practise is invaluable insight.