Risk oversight and risk management are high priorities on the agenda of most organizations.
Questions often arise as to how the chief risk officer (CRO) can ensure that organizational learning is supportive of effective risk management. A positive risk culture should help the institution become more proactive in (a) recognizing unique opportunities or risks and (b) using that knowledge to evaluate risk/reward trade-offs and decision-making options to seize the initiative before others do.
This tool focuses on topics that can help shape and support an effective risk culture.
- Is management periodically evaluating changes in the business environment to identify the risks inherent in the corporate strategy?
- Is the board sufficiently involved in the process, particularly when such changes involve acquisition of new businesses, entry into new markets, the introduction of innovative technologies or alteration of key assumptions underlying the strategy?
- Is there an understanding of the threats in the business environment that could derail the execution of the organization’s strategy?
- Are these risk factors monitored over time to provide executive management and the board early warning?