Mastering Risk Management

WHY RISK MANAGEMENT CULTURE MATTERS

The positives

A good culture, with shared values and behaviours, is the enabler and differentiator which allows firms to achieve their competitive advantage. The firm rooted in its culture will show:

• ■higher employee engagement
• ■increased trust, including allowing more delegation
• ■less-biased communication
• ■better decision-making and risk-taking
• ■improved selection of new leaders
• ■better recruitment
• ■enhanced performance and growth
• ■more focus for external stakeholders.

As Professor Roger Steare has said, ‘Values drive value’.14 Christine Lagarde, when she was head of the IMF, spoke about how leaders should take ‘values as seriously as valuation, culture as seriously as capital’.15

If you don’t get culture ...