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What's the best way to encourage a risk response culture in your organization?

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Risk response is the process of planning and implementing actions to deal with potential threats or opportunities that may affect your project objectives. A risk response culture is the attitude and behavior of your organization towards risk management, which can influence how well you identify, analyze, and respond to risks. In this article, you will learn what's the best way to encourage a risk response culture in your organization and why it matters for your project success.

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1 Benefits of a risk response culture

A risk response culture can help you improve your project performance, quality, and stakeholder satisfaction by enabling you to anticipate and mitigate risks before they become issues that disrupt your project scope, schedule, budget, or quality. Additionally, it allows you to exploit and enhance opportunities that can add value to your project deliverables, processes, or outcomes. Furthermore, it facilitates effective communication and collaboration with your team, sponsors, customers, and other stakeholders about the risks and their impacts, as well as the actions and responsibilities to address them. Finally, it enables you to learn from your experiences and feedback in order to continuously improve your risk management practices and capabilities.

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2 Barriers to a risk response culture

Creating and sustaining a risk response culture is not easy, as it may face several barriers such as lack of awareness or understanding of the importance and benefits of risk management, resistance to change the existing ways of working, conflicting or competing priorities, and inadequate resources. Leaders, managers, and staff may be reluctant to make changes that do not support risk management, while conflicting interests and agendas may hinder the alignment and commitment of stakeholders to risk management goals. Additionally, insufficient resources, tools, or systems may limit the ability to identify, analyze, and respond to risks effectively and efficiently.

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3 Strategies to encourage a risk response culture

To encourage a risk response culture in your organization and overcome barriers, you can apply a few strategies. Educate and train leaders, managers, and staff on risk management principles, processes, and practices. Involve stakeholders in risk management activities and solicit their input. Establish clear roles, responsibilities, and accountabilities for risk management that align with project objectives, scope, and governance. Provide incentives and recognition for risk management performance and improvement. Additionally, review and evaluate your risk management results regularly and share lessons learned with your organization.

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Sophia Carlton, CFE

Fraud Risk Executive | Fraud Magazine Columnist | LGBTQIA+ ERG Leader
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Achieving a risk response culture should involve a clear strategy - the strategy for education and awareness should be tailored by risk typology and include a clear approach to periodic and ongoing training, planned avenues or mechansims for awareness (e.g., risk topics at town hall or all hand meetings, risk topics in newsletters) + an approach to address rapid changes. Meaning, how do we deal with a swift change to our risk landscape? Good examples are changed to risk landscapes as a result of COVID-19 or GenAI.

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4 Tips to implement a risk response culture

To implement a risk response culture in your organization, you should start by creating a clear vision and strategy for your risk management, and communicating it clearly and consistently to your stakeholders. Utilizing a standardized and structured risk management framework, such as the Project Management Institute (PMI) Risk Management Process, can ensure consistency and quality. Additionally, adopting a proactive and positive approach to risk management can bring opportunities and benefits to your project and organization. Furthermore, it is important to foster a culture of openness, trust, and collaboration among your stakeholders, as well as creating a safe environment for them to share their risks, concerns, and ideas. Finally, seeking feedback from your risk management experiences and outcomes can help you monitor and improve your risk management processes and practices.

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Sophia Carlton, CFE

Fraud Risk Executive | Fraud Magazine Columnist | LGBTQIA+ ERG Leader
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Incorporate practical, role-based insight with interactive content (i.e., role-based, interactive content or game-based challenges, end-to-end case studies) to make training efforts even more effective. You should also develop a formal approach to evaluate effectiveness of training and awareness efforts (e.g., post-training survey, reductions in policy or control exceptions within the group who received the training). This will ensure you understand if what you are doing is effective or if adjustments are needed to achieve your end-goal.

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5 Resources to learn more about risk response culture

If you want to learn more about risk response culture and how to develop and enhance it in your organization, you can look into the PMI Practice Standard for Project Risk Management for guidance and best practices. Additionally, the Risk Doctor website offers articles, videos, podcasts, and courses on various aspects of risk management. Furthermore, the Risk Culture Builder podcast provides interviews and insights from experts and practitioners on how to build and sustain a risk culture in organizations.

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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?

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Sophia Carlton, CFE

Fraud Risk Executive | Fraud Magazine Columnist | LGBTQIA+ ERG Leader
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Build out metrics to track risk training and awareness activities and outcomes (e.g., # of trainings offered, # of staff who have taken training, results of satisfaction or feedback surveys following training). This will help track outcomes and value of the efforts related to building a risk response culture.

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What's the best way to encourage a risk response culture in your organization?

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3

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5

6

1 Benefits of a risk response culture

2 Barriers to a risk response culture

3 Strategies to encourage a risk response culture

4 Tips to implement a risk response culture

5 Resources to learn more about risk response culture

6 Here’s what else to consider

Risk Management

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What's the best way to encourage a risk response culture in your organization?

1

2

3

4

5

6

1 Benefits of a risk response culture

2 Barriers to a risk response culture

3 Strategies to encourage a risk response culture

4 Tips to implement a risk response culture

5 Resources to learn more about risk response culture

6 Here’s what else to consider

Risk Management

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