Stage 2: Assess the Current State - Uncovering Your Risk Culture Reality
In the previous post, we discussed the importance of defining your target state - the North Star that guides your risk culture efforts. Part two of this five-part series is a dive into “Stage 2: Assessing your current risk culture”.
Why Assess Your Current Risk Culture?
Assessing your current risk culture is like holding up a mirror to your organisation. It reveals the reality of how risk is perceived, discussed, and managed at all levels. This honest look is essential for:
Establishing a baseline to measure progress
Identifying strengths to build upon
Pinpointing areas for improvement
Prioritising initiatives based on gaps between current and target state
Gaining buy-in for change by making the case for action
Without a clear understanding of your starting point, it's difficult to chart an effective path forward.
Methods for Assessing Risk Culture
There are several ways to gather data on your current risk culture. A robust assessment often includes a mix of:
Surveys
Anonymous risk culture surveys can provide valuable quantitative data. Ask employees about their risk awareness, perceptions of leadership's commitment to risk management, comfort with escalating concerns, and more.Focus groups and interviews
Qualitative insights from focus groups and interviews add depth to survey findings. These conversations can uncover the "why" behind the data and reveal nuances in how risk is approached across different teams.Document review
Analyse existing policies, procedures, and communications related to risk. Do they align with your target risk culture? Are they well-understood and consistently applied?Observation
Pay attention to how risk is discussed (or not) in meetings, decision-making processes, and day-to-day operations. Do leaders model the desired risk behaviours?External stakeholder feedback
Seek input from customers, suppliers, regulators, and other external stakeholders. Their perceptions of your risk management practices can be illuminating.Key risk indicators
Review metrics like near misses, audit findings, and employee turnover. These can be signs of underlying risk culture issues.Actionable Insights for an Effective Risk Culture Assessment
Engage a cross-functional team
Risk culture affects every part of the organisation. Involve HR, communications, operations, and other key functions in the assessment process.Communicate the "why"
Clearly explain the purpose of the assessment and how results will be used. Emphasise that it's about improvement, not blame.Ensure anonymity
Encourage honest feedback by protecting respondent confidentiality. Use a third party to administer surveys if needed.Look for patterns
Analyse assessment data to identify trends across departments, levels, and demographics. These insights can guide targeted interventions.Share results
Transparently communicate assessment findings to all employees. Acknowledge strengths and commit to addressing areas for improvement.
What to Do With Assessment Results
Your risk culture assessment will likely reveal both positive aspects and areas for development. Use these results to:
Refine your target state based on a deeper understanding of current realities
Identify "quick wins" - high-impact, low-effort improvements to build momentum
Develop a roadmap to close the gaps between current and desired risk culture
Inform communications to build a compelling case for change
Create a baseline for measuring progress over time
Remember, assessing risk culture is not a one-time event. Plan to regularly re-assess to track improvements and identify new areas of focus.
Next Steps
Armed with insights from your risk culture assessment, you're ready to move on to Stage 3: Developing a strategy and roadmap for improvement.
Strengthening risk culture is a journey. By honestly examining your current state, you've taken a crucial step towards building a culture that supports your organisation's long-term resilience and success.
If you need support in assessing your risk culture and interpreting the results, I'm here to help. With extensive experience across industries and a focus on practical solutions, I can work with you to uncover key insights and prioritise next steps. Get in touch today to discuss how we can partner to strengthen your risk culture. Reach out via LinkedIn or Submit an Online Enquiry.
