Deloitte
Overview: There is no “one size fits all” solution to risk management — how an organization manages risk should align with, and support, its strategy, business model, business practices, and risk appetite and tolerance. This is especially true in the financial services industry where significant risk-based decisions are being made throughout organizations on a daily basis.
Essentially, a Risk Intelligent Culture exists within an organization when its employees’ understanding and attitudes toward risk lead them to consistently make appropriate risk-based decisions. Consequently, an organization’s risk culture drives the behaviors that influence day-to-day business practices, and is a significant indicator of whether the organization embodies the characteristics of a Risk Intelligent Enterprise™.
To a large degree, an organization’s culture determines how it manages risk when under stress. For some organizations, their risk culture is a liability. For others, it facilitates both stability and a competitive advantage. To that end, an organization wishing to cultivate a Risk Intelligent Culture should first understand and measure its existing risk culture.
