How can you ensure everyone in your organization is aware of their role in managing risk?

I agree with the above statement as many of the organisations or its processes failed because there is no clear RACI defined. Many people have only responsibility but no accountability. Hence no one takes the ownership of delivery and finally it poses risk to the organisation in terms of commitment of desired outcome

Incorporating a rotational risk management approach is essential. Instead of confining risk responsibilities to specific roles, encourage employees to periodically swap roles. This cross-functional understanding not only broadens individual skill sets but also ensures diverse perspectives when assessing risks. Rotational assignments foster empathy among team members, making risk management a shared endeavor rather than a siloed task. Embracing this fluidity encourages innovative problem-solving, creating a resilient risk management framework adaptable to ever-changing business landscapes.

Clear, consistent communication. Give a thorough explanation of the organization's risk management policies and procedures. Use a variety of communication channels to share this information, including as emails, meetings, and internal publications. Implement channels for employees to report risks or seek clarification about their roles in risk management.

Risk Management to be part of the DNA of the organisation. Leadership should communicate that everyone has a role to play in Risk Management. Open dialogue and discussions between the risk and business teams to be done on periodic basis which will allow flow of information on new regulatory changes, policies from risk teams to business. On the other side, it will also enable flow of information on actual market movements, customer behavior and key changes in market from front end business teams to risk teams. This will build cohesive teams and bring the organization to the forefront in dealing with market changes.

There are generally three lines of defence in any risk management framework. First is the team or person is responsible for a particular aspect of work. Second could be an independent risk team to evaluate the decisions of the responsible team. The other line of defence comes through regular audit of each team's activities. Now, for risk management to be complete each employee should be responsible and voice out his or her concern when noticing something off. To enable each employee with this possibility, the organisations should invest in some kind of basic risk management training for each of their employee and create a platform where they can raise if they see any anomaly.

I believe Risk Management starts from setting tone at the top; how risk is perceived by those charged with governance and what is the value they assign to risk management. Everyone looks towards their leaders and tries to internalize what they really value. Beliefs and actions of those at the top will determine how risk management is taken seriously and are the most effective way to communicate policy on risk management. Once that message is delivered across the board, everyone starts thinking on similar lines and try to adopt and even contribute to their improvement. Any policy and/or procedure should take human considerations as the top most contributors, if the same needs to be recognized by those implementing and ensuring compliance.

In addition to communicating risk policies and procedures, you should also communicate why risk management is important in the first place. Risk management is often considered just another task on an employee's already full plate. By providing purpose and meaning to employees, organizations can optimize the value of their risk processes.

Disseminating effectively the risk management policies and procedures is only the first stage, enforcing these ensures the efficiency of any risk management program. By allowing as little space for trial and error as possible and creating automated processes, we eliminate fail points and enable users to benefit from a correct decision-making process.

One step ahead, all the stakeholders input should be appriopirately considered in developing the risk related policies and procedures. Once these documents are agreed upon by all the stakeholders. The communication and implementation will be more easier and beneficial instead of just developing the documents and rolling them out. Stakeholders are the humans who will be conducting the whole risk management framework activities. One of the success factors for risk management should be: "All stakeholders agreement on the risk related documentation".

Sharing the acquired expertise along the years in addition to the actual problems faced and the solutions applied or even improvised accordingly is a must in every department and division.

1) Tailored Training: Offer tiered programs - basic for all, intermediate for managers, advanced for risk owners. 2) Hands-on Scenarios: Use real-life examples to make training practical. 3) Ongoing Support: Periodic refreshers and coaching to address evolving risks. 4) Feedback Mechanism: Allow staff to share their risk-related experiences. 5) Certifications: Encourage staff to obtain risk management certifications. Promote a culture of continuous learning and adaptation in risk management.

Its important to ensure the organisational behaviour on Risk Culture is well communicated and well understood by all levels, but starting from the top to the lowest level in the organisation. This can be done by continious formal and informal trainings, practices, actions by leadership and superviors. Policies for businesses operations need to embede risk management practices and clear roles and limits be set which become part of daily monitored limits.

Ideally this section of the article is right, although it depends on the tools available and the resources allocated to risk management. For sure not all the employees need the same depth of understanding of risk. Tailored training based on the role of the employee in the structure is the best approach if feasible in the organisation.

Implement comprehensive risk training programs tailored to different organizational levels, utilizing a mix of in-person sessions, online modules, and practical simulations. Incorporate real-life case studies to enhance relevance and understanding. Offer personalized coaching sessions for key personnel to address specific concerns and reinforce individual responsibilities. Foster a culture of continuous learning through regular updates and refresher courses. Encourage open communication channels for employees to seek guidance on risk-related matters.

Training is best being basic with no faff and no fluff! Explaining the theoretical nuances between KPIs, KRIs, and KCIs is of no real value. For non-risk professionals, managing risk can be an additional burden to workloads so it’s important any training considers this. A few key things: - How can managing risk work for them? Visualise how risk data can act as their canary in a coal mine. - Engage with people on their turf: what data do they already collect and use it to exemplify your point. - Any common issues or big risk events recently? Use them too. Show what checks (controls) could be introduced to prevent them occurring again. Framing the familiar within the world of risk is so important to obtaining that buy-in.

Use real life case studies: Sharing examples of how risks have been successfully managed or poorly managed can be a powerful learning tool. These case studies can also serve as a reminder of the potential consequences of failing to manage risks effectively. Leverage technology: Use technology to streamline and automate the risk management process, making it easier for everyone to participate. This could include risk management software that helps identify and assess risks, or communication tools that make it easier to collaborate and share information about risks.

1) Open Channels: Establish transparent communication channels like forums or digital platforms. 2) Regular Meetings: Schedule routine risk discussions to share and update on potential challenges. 3) Feedback System: Implement a system where staff can easily report risks and provide suggestions. 4) Recognize Contributions: Acknowledge and reward staff for meaningful risk insights and improvements. 5) Promote Culture: Emphasize the value of a risk-aware culture in all communications and trainings. Ensure that every employee feels empowered and responsible for contributing to the organization's risk management efforts.

In my experience, soliciting dialogue with staff and being open to conversations about risk is crucial for receiving high-quality feedback. It creates a culture of awareness, breaks down silos, and contributes to more effective risk management. We are teachers as much as we are subject matter experts.

Hold regular meetings with managers and business units to discuss risk-related issues. This can help foster a better understanding of risk across the organization.

All staff conversations around risk should also include a strategy component. There are risks everywhere, so it is important for employees and staff to understand the main corporate strategies and the key risks that are tied to those strategies. We need employees to understand the "Why" for the various risk mitigations.

Measurable residual risk management in an interactive graphical layout with comparitive modelling will retain interest, recognition and reward. Addressing the Maslow theory of recognition, attention and appreciation should drive the culture instead of direct money incentives. Retaining a well organized business that care about sustainability will create Governance appreciation, stability, and interest in the wellbeing of staff.

Recognizing and rewarding staff for successful risk management is vital. Celebrating these wins not only motivates but also empowers employees. It fosters a healthy work culture where risk mitigation efforts are valued and acknowledged. This approach reinforces positive risk behavior and attitudes, contributing to an environment where employees feel supported and appreciated for their proactive efforts in safeguarding the organization.

Acknowledge and celebrate individuals or teams that demonstrate exemplary risk management efforts through regular communication channels. Tie performance evaluations and incentives to effective risk contributions, reinforcing the importance of risk awareness. Implement a structured rewards program that may include financial incentives, professional development opportunities, or public recognition. By linking recognition to proactive risk management, you motivate and align the entire organization towards a shared goal, ensuring that everyone is aware of their vital role in mitigating risks and contributing to the overall resilience of the organization.

It is important to have meaningful metrics for risk performance. When defining those, I like to ask myself the following questions: 1. Is this metric important? 2. Can I reliably measure it? 3. Will improvement of the metric bring me closer to the ultimate goal? 4. Is there any point of reference (e.g. industry average) that we can compare ourselves to? 5. What is a realistic target for it in current context? If you are able to positively answer these questions - congrats, you probably are on the right track of improving your risk posture!

I absolutely agree with this point. Rewards or incentivised risk management programmes. Rewarding employees for being vigilant in the prevention or identification of risks could also encourage an extra level of vigilance and buy-in from staff. This could be an actual award, or trophies pass led on over the years, and something more than a certificate to keep. Depending on the size of the organisation and it’s budget, award staff with things that matter to them. The risk with rewards is that it could also quickly lose the plot, with unnecessary reports and become tedious admin for the team responsible to vet entries. Again an expectation of staff to be adults must be stretched.

By implementing robust risk communication strategies, you enhance your flexibility to adapt when the organisational context changes. Adaptability to shifts in internal structure, governance, regulatory environment, product modifications, among others, is crucial for risk managers. Establishing a solid risk culture is also beneficial, as it likely reduces the workload during transitions. In a well-established risk culture, the 'new owners' will likely provide feedback and highlight necessary adjustments in risk management roles proactively.

Conduct thorough assessments of organizational needs and industry changes. Involve key stakeholders in the process to gather diverse perspectives. Utilize feedback mechanisms and lessons learned from past incidents to refine roles. Communicate updates clearly through training sessions, documentation, and interactive forums. Foster a culture that values adaptability and continuous improvement. Ensure that all staff are aware of changes and provide support for any necessary adjustments

Nothing to add here. I’d recommend the same… With emphasis on the risk actually making sense to its audience, using a SMART method for example. Business jargon and language can either inflate or undermine the risk, keeping it simple generally works just as effectively.

Top Management buy-in and I mean genuine buy-in, not the lip synching type of buy-in or only when the securities commission, regulators, investors, financiers or customers requests for risk management reporting or disclosures. Reasonbeing is that managing risks takes time, effort and commitment. For everyone to play their role in managing risks, as "Risk is Everyone's Responsibility", we need strong conviction and consistent tone from the top that demands it. Only then can the risk ownership and culture to permeate across the organization. Other areas are important e.g. policies process, system, technology, training, feedback loop etc. However, without stewardship from the top, all of this will fail as it will turn into a paper exercise!

Link Risk Management to Performance Evaluations. Consider incorporating risk management performance and adherence to policies and procedures into employees' performance evaluations, reinforcing the importance of compliance.

Promoting a Hybrid Approach to Risk Management Traditionally, we have relied on risk specialists to facilitate risk workshops and viewed this as the primary, if not the sole, method for discussing risk management and recording information. However, promoting a hybrid (centralized-decentralized) approach encourages the idea that risk discussions should be integrated into all meetings. In this approach, supported by risk specialists, risk champions, risk owners, or action owners (depending on the level of maturity of the organization) would be directly responsible for risk management conversations in a systematic manner. A centralized approach may hinder the spread of this essential message across the organization.

How can you ensure everyone in your organization is aware of their role in managing risk? Speak about it. Making risk an common item of discussion at any level can enhance the awareness around this topic also among those that are not risk experts. At the end, our goal is to make everyone a better decision maker through a risk based approach at any level within the organization.

Organizational culture deeply impacts risk management. If a company values innovation, risks might be seen as growth opportunities. In contrast, conservative industries might view deviations strictly as threats. The cultural backdrop can influence risk perception and communication. If mistakes are heavily penalized, employees may avoid reporting risks. Conversely, a culture promoting transparency and learning from errors encourages proactive risk management. Leaders should cultivate a culture aligning with their risk management goals, not just provide tools and training.