How can your organization foster a culture that supports operational risk awareness?

It’s not just knowledge of the risks that’s important here - sometimes teams can be unaware of up- and down-stream processes and impacts. Simply understanding the nature of risk isn’t enough - you need to know your business and your part in it. Encourage those with this knowledge to share it, and go out and talk to other teams to learn as much as you can about the teams around you. You’ll understand the risks inherent in your business so much better with context.

Creating risk awareness is crucial for effective risk management to support the achievement of objectives. This makes risk management integral to the organization's DNA, improving performance, resilience, and sustainability. This require commitment from the top by establishing a risk governance framework. Regular training tailored to different levels of accountability, aligning incentives with risk management objectives, embedding risk considerations into critical decision-making, and promoting collaboration and information-sharing across different business units can help in raising risk awareness. Reporting to the board improve ultimate accountability in managing key risks and enhances resilience thus supporting long-term success.

Estabelecer um programa contínuo de educa??o e treinamento sobre identifica??o, avalia??o e redu??o de riscos operacionais permite que a equipe esteja muito mais preparada para os possíveis problemas que possam surgir. Previnir sempre é o melhor remédio!

I belong to an organization, which prioritize Operational Risk awareness by performing , Education and Training Clear Communication Use of Technology and Tools Continuous Improvement By implementing these strategies, organizations can cultivate a culture that not only supports but also values operational risk awareness, leading to more resilient and effective risk management.

Risk awareness is the easiest way to mitigate risk. When the janitor is aware of how he/she contributes to the bottomline of the business and how a failure at his/her end affects the business, it makes the job more easier. All staff are risk managers and only risk education can made them be aware of their role.

Periodic learning points roundtable should be encouraged. A cross-departmental collaboration sharing failure points and lesson learnt and mitigation strategies will improve risk awareness and reduce exposures.

Risk Management can not be done in silo. Executive management must lead and be seen leading risk management initiatives. They are to determine the directions the organisation will face in risk management and execute policies and frameworks.

To inculcate risk culture in an organization, the leadership must get involved. Top down approach to this initiative would assure everyone in the organization is provided with adequate training on risk management and its impact. Similarly, on periodic basis and through various mediums, awareness programs should be organised to keep it in circulation. Rewards and recognition programs from leadership would further encourage employees.

Risk management a very niche and dynamic function which is ever evolving. With new kind of threats the society is facing, it is important to identify such risks and align our mitigation plan in the same line. For example, environmental risk posses many threats to businesses viz water depletion or cyclone in a particular area would hamper debt management hence such issues should be factored in while making mitigation plans. Upcoming risk is due to AI misuse which organisations can identify in their respective areas and frame it in their policy.

Demonstrate how operational risk awareness adds real value to the business rather than waving a regulatory stick. If you cannot sell the benefits, you should question the requested activity!