We influence positive change in your risk culture.
We work directly with your leadership by embedding a dynamic set of best-practices towards managing risks within your organisation. We influence and encourage desired outcomes of behaviour, discussion, decision and attitude toward taking and managing risk.
We focus on binding together all the elements of risk management infrastructure to better reflect in the shared values, goals, practices, and mechanisms within your decision making and operating processes.
Leadership itself is responsible for inducing the Risk Culture of an organisation
Why Risk Culture?
Risk Culture is often an overlooked and underappreciated element of organisational culture and the impact it has on the company’s response to risk.
While the structural implementation and operation of your risk framework is important, having an appropriate risk culture aids the transition from mere compliance, to something that creates value for an organisation. In most cases, adequate frameworks are in place, but they are not necessarily embedded into business operations, likely due to a mis-aligned risk culture.
Risk culture should be the focus of your business operations and risk management functions. Ultimately, your board and senior management own the risk culture. Developing and maintaining a strong and positive risk culture is important for many reasons, including its influence on compliance, organisational performance, and risk management effectiveness.
The Value Propositions
At the organisational level, understanding and expressing risk culture is a compliance obligation for corporate governance.
Risk culture is also a determinant of organisational success and failure. Risk is principal emphasis in many areas of behavior and culture. It encompasses the issues with which companies understand their exposure to risk, and how this might change by embedding the right risk culture throughout the company.
Risk management effectiveness.
The most important way in which risk culture matters is that it has a critical effect on risk management effectiveness. The prevailing risk culture within an organisation can make it significantly better, or worse, at managing risks.
Risk culture affects risk appetite, including strategic and tactical decisions on how much risk to take in a range of situations and settings. Risk culture informs the setting of objectives and strategies, as key decision-makers seek to determine the optimal course in an uncertain environment and context.
Governance tone from the top.
A company’s board and senior management should establish a clear and communicable approach to risk, which is understood by all levels of the employee hierarchy. Consistency in corporate communication, decision making, and actions is critical to avoid misinterpretation.
Accountability for incidents and escalation.
Lines of accountability need to be clear and enforced, preferably to individuals rather than committees, where accountability is often missing. The focus should be on the identification of what went wrong, what can be learned, and whether changes to process or controls are required. Only then, deal with disciplinary or assignment of accountability as a separate matter to encourage open discussions.
Training, succession planning and talent management.
These elements should support and enforce the desired culture and behaviour. Be conscious of your Risk Culture when making decisions around them. Measure and reward performance, based on your desired Risk Culture, both financially and non-financially. Setting goals around key performance indicators will inspire the culture you create.
The Risk Culture should support your business strategy and core competency. There is a close link between the success of a strategy implementation and the organisation culture. If they are not already aligned, then changing one is critical to changing the other. Ask yourself if what you see in your Risk Culture mirrors what your clients perceive?
A quality board is highlighted by its activism in embedding a strong risk culture throughout the institution. Behaviours, not structure!.
How We Do It
Risk Culture is one of the most difficult aspects of an organisation to change, as it is so deeply rooted in day-to-day activities - and can be hard to identify. However, leadership teams can begin by considering that risks are taken daily. No one could hope to be profitable without them.
However, if risk-taking becomes too extreme, it could lead to customer suspicion, employee activities that go against stated values, or even the end of operations. Risk-taking does not necessarily lead to financial or reputational damage, but it still has the potential to negatively impact goal achievement.
On the other hand, a risk culture that is too strict can take away any potential benefits of risk-taking, such as significant growth. We help organisations strike a balance by defining and implementing a strong risk culture.
We are a specialised risk management consultancy implementing the latest technologies and best practices for businesses to manage their risks, build their business resilience and accelerate their growth.
The Vision of Eagle Edge is to be the catalyst for risk transformation, resilience creation and growth acceleration of our client's enterprise value. We turn risks into opportunities.
Risk Culture helps develop effective codes of conduct.
A Code of Conduct is not simply a reflection on how employees around the office individually conduct themselves. It is about how the business units are guided to conduct themselves and therefore the overall behaviour of the organisation.
Protects organisational assets and reputation.
Risk culture is essentially creating a structure of rules, frameworks and processes that will effectively control any risk within the company on a best-effort basis. A strong risk culture helps prevent instances of fraud, employee scandals, misconduct and more.
Excellent Risk Culture fulfils the needs for staffing requirements, talent, ability, diversity and their overall work environment - and effectively stimulates a culture of sustainability for the employees as well as the organisation as a whole.
Flaws in risk culture, from poor leadership and communication to general incompetence, have all been blamed for a variety of industry disasters. A mature risk culture helps to develop a solid leadership attitude towards risk and enhances the communication across the entire organisation. This helps to reduce the impact of a catastrophe, should one occur.
A strong risk culture allows for continuous education to ensure staff are competent with the latest tools, techniques and strategies that are deployed within the organisation and the industry. It can also ensure suitable funding for training and education, resulting in enhanced competency of the staff.