What is it about?
The study shows how the company successfully changed from a compliance-based and defensive risk culture to a cognitive risk culture where rank and file employees understood risks and their own roles in managing them. The company accomplished the change by creating the role of risk champions who are line employees given the additional task of liaising with the office of risk management. It also developed better tools to improve the communication of risks throughout the organization. The company's method of deciding upon these changes is best described as doing a root cause analysis using systems thinking approach.
Featured Image
Why is it important?
Companies and regulators are concerned that risk management is not functioning as it should. It is also known that good risk culture is necessary for good risk management. However, the literature provides little guidance on how to achieve a good risk culture. By describing the company's steps, the study shows companies and regulators a practical method of enhancing risk management and governance.
Perspectives
This is my first qualitative study. With the limitations of p-values becoming well known, I think qualitative research will become more important in future. Doing this study was a nice learning experience for me--from my co-author and the journal's referees and editor.
Professor Sanjay G Kallapur
Indian School of Business
Our research is to explore good practices in risk governance. This research paper was a good learning journey and we are very thankful for referees to provide us with several inputs to improve the paper. The article provides a new thinking to practitioners and regulators about how they can improve the current state of risk governance.
Dr Ruchi Agarwal
Management Development Institute
Read the Original
This page is a summary of: Cognitive risk culture and advanced roles of actors in risk governance: a case study, The Journal of Risk Finance, August 2018, Emerald,
DOI: 10.1108/jrf-11-2017-0189.
You can read the full text:
Contributors
The following have contributed to this page
