If a business or organisation is to effectively manage the risks facing it, it has to create and entrench a risk culture.

A risk culture has to start from the top and transcend every dimension, area and facet of a business or organisation. It must include all employees and extend to the customers and suppliers of the business or organisation.

A risk culture starts at the front gate or front door, it includes interactions with customers and suppliers, it is part of recruitment and the terms and conditions of employment, it forms part of job descriptions, it is part of employee induction and training, it is part of the code of conduct, it forms an integral part of all IT policies, systems and their usage, it involves a specific focus on safety and security and the minimising of risk in every business and operational process.

An inappropriate risk culture can result from certain individuals - often the business owners or senior office bearers, or certain areas undertaking or conducting themselves in a way which is condoned or overlooked notwithstanding laid down procedures. These activities inevitably result in damage to the business’s reputation and financial losses.

By developing a proactive risk culture, management has time to develop a strategic approach to potential future risk. While a risk culture will not eliminate all the risks facing a business our organisation, it will:

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