RSM partners with Peak Performance International, a Melbourne-based people and culture consultancy, to conduct Risk Culture Indicator (RCI) surveys. When integrated with our bespoke internal audit and consultancy approach these provide a unique level of assurance over, and insight to, the design and effective implementation of a client's Risk Management and Conduct Framework.
An organisation can have best-practice risk controls in place however, it is their culture that ultimately influences the decisions made and the actions taken by its people. The values and behaviours of leaders and staff underpin an organisation’s culture, and manifest in ‘how we do things around here’. Risk culture is a sub-set of organisational culture that reflects the prevailing attitudes and behaviours of all staff towards taking and managing risks.
Underlying cultural drivers are not easy to see. When it comes to risk, leaders can feel that their culture is on the right path but they need evidence to understand the strengths and challenges in their risk culture. The voice of dissent or concern can be lost without the right culture to support open, honest and accountable feedback.
Staff and leaders’ perceptions of accountability, risk management, risk leadership and risk appetite can be understood through auditing the prevailing values and behaviours across an organisation. That is why it is important to complement risk reviews that examine risk management frameworks, policies and procedures with risk culture reviews, and to ‘peek under the hood’ to see what is happening from a cultural perspective.
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- Reviewing risk culture
- How the RCI works
- Managing risks in a volatile environment
Linley Watson, CEO of Peak Performance International and a behavioural subject matter expert for RSM, works with Jeremy Elman, Principal of the Risk Advisory division at RSM. For more information on the RCI survey, visit www.peakperformance.com.au.
This article was originally published on 20 July 2020 at https://www.peakperformance.com.au/post/culture-drives-risk-outcomes.