Methods of Embedding Risk Awareness in Organisation

Risk embeddedness

Risk embeddedness refers to the way in which risk awareness and management are interwoven into the normality of systems and culture in an organisation. These two twin aspects (systems and culture) are both important because systems describe the way in which work is organised and undertaken, and culture describes the ‘taken-for-grantedness’ of risk awareness and risk management within the organisation.

The methods by which risk awareness and management can be embedded in organisations are as follows:

1. Aligning individual goals with those of the organisation and building these in as part of the culture. The need for alignment is important because risk awareness needs to be a part of the norms and unquestioned assumptions of the organisation.

2. Training of staff at all levels is essential to ensure risk is embedded throughout the organisation.

3. Including risk responsibilities with job descriptions. This means that employees at all levels have their risk responsibilities clearly and unambiguously defined.

4. Establishing reward systems that recognise that risks have to be taken (thus avoiding a ‘blame culture’). Those employees that are expected to take risks (such as those planning investments) should have the success of the projects included in their rewards.

5. Establishing metrics and performance indicators that monitor and feedback information on risks to management. This would ensure that accurate information is always available to the risk committee and/or board, and that there is no incentive to hide relevant information or fail to disclose risky behaviour or poor practice. A ‘suggestion box’ is one way of providing feedback to management.

6. Communicating risk awareness and risk management messages to staff and publishing success stories. Part of the dissemination of, and creating an incentive for, good practice, internal communications is important in developing culture and continually reminding staff of risk messages.




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