Risk Culture - an essential asset for innovative industries, which carries the potential to recognize the power of risk-taking
FREMONT, CA: A Risk Culture is typically a process of developing a framework to establish a standard for managing the risk faced by an organization. Every organization has its risk culture to support long-term success efficiently. It is generally a thought process or a risky decision to enforce the direction of strategy and objectives of the business. An influential risk culture helps to build customer trust in firms and market place. In the digital era, many IT companies are only optimized for efficiency and productivity, missing the vital need for new experiments and failures to nurture innovations. Rephrasing the term failure- as a way of learning, innovative organizations can adapt it as an essential feature. The risk factors in a business have to be flexible and acceptable to gain success.
• Risk Awareness
Senior and middle management plays a crucial role to set the culture across the organization, which follows the risk management education and training, risk management policies of the company and decision analysis of the official risk policies.
A secure discussion regarding ethics and risk is essential to the employees managing the critical daily responsibility. It involves the strategies to improve the risk function, and business lines to work together. An efficient risk culture works as a separate organization by pushing the boundaries of operations to achieve the company’s long-term strategic goals by productive discussions.
Right thinking and behavior trigger the quality of taking responsibility for risk and controls. Demonstrating a positive attitude by acknowledgments and rewards to risk management skills can build trust and also an efficient team as the most crucial ingredient for a business to success.
Risk culture establishes a great positive environment in an organization, motivating the employees to work and always search for possibilities. An efficient risk culture delivers productive and profitable risk-taking decisions and also to be able to predict potential loss and ways of recovery at the time. A right set of rules for efficient risk culture can be created quickly, whereas the challenge is to practice it wisely.