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Wherever there are people there is culture. The challenge for a firm is to ensure an appropriate culture that aligns the attitudes, behaviours and conduct of its workforce with its strategic and governance objectives. From the Global Financial Crisis to the LIBOR and countless other financial scandals, the consequences of getting this wrong are severe. Both corporate governance and financial services regulators have taken note, and often require firms to not only understand, but control their culture in an appropriate manner. An organisation’s culture, and by extension its risk culture, are both a source of strength and weakness when it comes to risk management. An appropriate risk culture will ensure that staff accept the importance of effective risk management and behave in a manner consistent with the organisation’s operational risk policies, procedures, and appetite. An inappropriate risk culture can be both a cause of risk events and a mechanism for intensifying their impact.
The course will start by looking at the factors that can cause risk cultures to change and evolve over-time, including the issue of risk sub-cultures. A case study of a bank will be used to illustrate the types of factors that can influence risk culture. We will then consider how risk culture can be assessed and monitored. An example risk culture survey tool will be provided, and you will learn from the experiences of an insurance company that attempted to use such a tool. In addition, example risk culture metrics will be discussed. The course will conclude with a look at some tools and techniques for managing risk culture. Topics will include: ‘tone from the top’; the role of the risk culture; and training. Again, we will revisit the bank case study to learn from real world experience.
By the end of this workshop we will cover:
Understanding the depths of risk culture
Assessing and monitoring risk culture
Controlling risk culture
Conclusion: your personal action plan for enhancing your organisation’s risk culture work
Dr Simon Ashby, Financial Services at Vlerick Business School
Dr Simon Ashby is Professor of Financial Services at Vlerick Business School, Belgium. Simon has worked as an academic, a financial regulator and a senior operational risk manager in several UK financial institutions. He also provides training and consultancy services in risk management.
Simon has a PhD in corporate risk management from the University of Nottingham and has published many academic papers and industry reports on risk, governance, financial services regulation, banking, and insurance. His current research interests include board level risk management, cyber risk, risk culture and operational risk management.
Simon is a Fellow and former Chairman of the Institute of Operational Risk and a Director and Audit and Risk Committee Chair of Plymouth Community Homes.
Executive and non-executive directors looking to understand how they can monitor and control risk culture
Chief Risk Officers
Risk Managers
Internal Auditors
HR Professionals
Risk management consultants and specialists