The ABC of Risk Culture

This presentation formed part of the Second Global ERM Online Symposium 2014. David Hillson, The Risk Doctor, looks at the origin of culture from first principles before applying the resulting insights to risk culture. Discover what a good risk culture looks like, and how you can get one.

[@zilvinas100]

I am writing my Masters's dissertation on Risk culture. This is a very informative video that allows getting a general idea of Risk Culture.

[@Risk-Doctor]

Thanks, I'm glad it was helpful.

[@claudio0872]

I've started to write my Master's dissertation on the same matter Žilvinas! If you have some literature or tips for sharing, please, let me know... tks in advance from Brazil!

[@caradg1]

I am a risk professional in the engineering and construction environment. I find that a good Dilbert cartoon can go a long way to help lighten mood, espeically before a long workshop.

[@Risk-Doctor]

Yes ... as long as you've got a licence to show it! But I agree that humour is a powerful tool if used well, and this is discussed in my short video Humour in risk management. Enjoy!

[@lebogangmpshe1994]

Very informative and subject made easier to understand. Thanks Doc.

[@Risk-Doctor]

I'm glad it was helpful!

[@leratomatete4107]

Thank you so much

[@Risk-Doctor]

You're very welcome Lerato.

[@luckyihunda6330]

wow it was a great presentation i have ever seen.

[@Risk-Doctor]

+lucky ihunda Thanks Lucky, I'm really glad you like this one.

[@KatoMoses-vj5ys]

Thanks much sir

[@Risk-Doctor]

You're very welcome Kato.

[@mathewopara1731]

Good Presentation

[@Risk-Doctor]

Thanks Mathew, glad you liked it.

[@r.t1909]

I like rhis viddeo a lot.

[@Risk-Doctor]

I'm glad you like it, thanks Taye!

[@tsibinkalne1318]

This is an interesting and informative video

[@Risk-Doctor]

Thanks, I'm glad you like it.

[@orkhanhasanov1922]

very good!

[@Risk-Doctor]

Thank you!

[@noerbahar458]

Thank you Dr David, i fell better now

[@Risk-Doctor]

I'm glad to hear it!

[@chetanasin9150]

Thanks

[@Risk-Doctor]

Welcome

[@horstsimon9504]

Risk practitioners generally failed to address the underlying human aspects. Since the publication of the Basle accord, ISO 31000 and other standards and regulations, it has often been argued that compliance with these standards and regulations will mitigate and control risk, but this is only true if the standards and regulations are embraced in an effective Enterprise Risk Management Culture. Just like the policies, procedures and systems, these are worthless if human attitude, acceptance and desired response lack.
Addressing the aspect of people risk is the only way an organisation can improve the results of how their people respond to a situation of risk and the effectiveness of their risk management function. No organisation can ever have a perfect risk management culture, but organisations can achieve a level of maturity where they have an effective risk culture process and every employee is risk-minded and does something on a daily basis to mitigate, control and optimize risk
The development of Risk Culture Building is focused on awareness and training in business ethics and human behaviour, as mentioned, both the behaviours we want to encourage and the behaviours we want to avoid. Organisations should frequently evaluate the progress (or regress) they are making on the path to maturity and implement action plans.
Join the global discussion group here:
www.linkedin.com/groups/4066904

[@Risk-Doctor]

Thanks for this thoughtful comment Horst - I agree. As an aside, TH-cam don't usually like comments to include links to other content, so your ref to the linkedin discussion group initially invalidated your comment. I've manually overridden that though thought you should know.

[@horstsimon9504]

Thank you, the objective is for all members to discuss and learn from each other's experience, Much appreciated

[@barrygordon4538]

Hmm ... culture is introduced as "internal and invisible" and yet, moments later, behaviours (visible manifestations) "form culture". Plenty of sophistry there. Later, "the way we do things around here" is dismissed as a definition of culture because it is "behaviour". Really? Don't agree. "The way" implies the approach - the mix of shared priorities, understandings and methods that are taken up.

[@Risk-Doctor]

Thanks for your input Barry. There's a lot of loose language around culture and related topics, and perhaps I've been guilty of some of that myself. However the ABC Model introduced in this presentation shows that repeated behaviour (B) forms culture (C), but that C in turn shapes B. The relationship is cyclic and reinforcing (either positively or negatively), which is why we need to intervene by choosing an appropriate attitude (A) if the underlying culture needs changing. I think this way of approaching culture is consistent and makes sense, don't you?