How do you benchmark and improve your staff risk management maturity and effectiveness?

?? Example : A company conducts a survey of all staff to assess their risk culture. The survey results show that staff are generally aware of the company's risk management policies and procedures, but they are reluctant to report risks for fear of being blamed or punished. ?? Based on the survey results, the company develops a risk culture improvement plan that includes the following measures: ??1. Launch a risk awareness campaign to educate staff about the importance of reporting risks. ??2. Develop a confidential risk reporting process. ?? The company implements the improvement plan and monitors its progress over time. The survey is repeated after one year to assess the impact of the improvement measures.

The key measure is how embedded risk management and risk considerations are in objectives, decision making and actions. Tone from the top is important but does risk management travel through the ranks and does the message reach all levels. Finally, messaging is one thing but the true test is capture in actual processes and everyday activities.

Identifying the areas of improvement and constructing a structured approach is important for analyzing the loopholes. 1. Communicate the defined objective of the goal to the staff. What level of maturity you want to aim for 2. Assess and monitor the current state and identify the shortcomings in it. 3. Define and track key performance indicators (KPIs) related to staff risk management. 4. Regularly conduct surveys and gather feedback. 5. Integrate risk management into day-to-day processes and decision-making. 5. Conduct regular audits and assessments to monitor compliance with risk management practices.

It starts with the leadership team and how they lead by example. The leaders of an organization sets the tone on the values of his team. So while assessing your teams risk management culture is important to mitigate any potential knowledge or skill gaps your team has but is definitely not the main driver. Sense of ownership, accountability as values/attitudinal behaviours are drivers to a strong risk management culture.

Assessing the risk culture of your staff is paramount for understanding their shared values, beliefs, and attitudes toward risks. A robust risk culture fosters awareness, accountability, communication, and learning about risks. Utilise tools like surveys, interviews, focus groups, observations, or audits to evaluate your staff's risk culture comprehensively. Identify strengths, weaknesses, and opportunities for enhancement to cultivate a risk-aware and proactive organisational culture.

Staff risk maturity levels are an important factor to consider when developing and implementing a risk management program. By understanding the risk maturity levels of your staff, you can tailor the program to their needs and capabilities. This will help to ensure that the program is effective and that risks are managed effectively. Organizations should assess the risk maturity levels of their staff on a regular basis to identify areas for improvement. This will help them to develop and implement a risk management program that is effective and sustainable.

I applied RMMM by doing the gap analysis against the various regulatory requirements. Over the years I have learnt that still risk management is not fully appreciated in the business unless it is driven by regulators and the companies do not invest in the development of the risk culture.

Delving into the levels of staff risk assessment from Basic to Expert Level. ??Basic Level: They have limited understanding of risk concepts.More compliance-focused rather than risk-aware. ??Intermediate Level: Recognizes and understands basic risks in their domain.Adheres to established risk protocols. ??Advanced Level: Proactively identifies potential risks.Collaborates with peers and management to mitigate risks. ??Expert Level: Actively contributes to shaping risk management strategies.Demonstrates leadership in fostering a strong risk-aware culture.

In addition to the above, a good way to benchmark is through consideration of self identified issues, participation in risk management committees, KRIs, control performance etc. Ways to determine how embedded risk is as a concept and how much the organisation is proactive rather than reactive.

To boost staff safety, start by figuring out potential risks. Keep policies up-to-date and in line with best practices. Teach your team about risks and how to handle them. Have a plan ready for when things go wrong and practice it. Encourage open communication for reporting issues and learn from staff feedback. Use tools to keep an eye on things and check how well your safety measures are working. Stay connected with industry trends and follow the rules. It's all about staying flexible and making things safer for everyone

Operational Risk Management isn't just a top-down initiative; it's a tool that empowers every employee. By aligning Operational Risk Management with the organization's core vision and mission, employees can see its direct impact on their roles and the broader organizational success. Operational Risk Management fosters a proactive approach, leading to better decisions and fostering innovation. It's not just about mitigating risks but leveraging them for growth. Real-life examples can drive home the tangible advantages of Operational Risk Management, underscoring the importance of a risk-aware culture supported by a mature and effective staff.

In the ever-evolving business landscape, managing risks is not just a necessity, but a cornerstone for sustainable growth. The concept of risk management maturity (RMM) comes into play to assess an organization's capability to manage risks in a structured and systematic manner. The following steps can ensure effective risk management maturity: - Conducting a risk maturity assessment; - Tailoring the implementation of the RMM models; - Training and Capacity Building; - Continuous monitoring of the implementation process, coupled with regular feedback from all stakeholders For example, if the risk maturity analysis revealed a need for better risk communication, implementing a centralized risk reporting platform could be a key action item.