Common design principles and challenges with measuring risk culture

Many organisations, across a variety of sectors and industries, are realising the benefits of investing in risk culture and how effective a strong risk culture can be as a key strategic enabler. This has led to numerous organisations performing risk culture assessments to understand their current risk culture and behaviour, and now many are considering how they objectively measure, monitor and report risk culture on an ongoing basis. However measuring risk culture is proving to be a more challenging task for organisations, and there are a range of views to risk culture metrics and approaches across the market – including the use of the word metrics itself. Some feel they are indicative rather than precise or complete.

What is clear is the benefits of monitoring risk culture and periodically engaging with key stakeholders the learnings and on their role (e.g. Executive and Board). This provides insights into the effectiveness and alignment of strategies supporting a strong risk culture, the extent to which risk mindsets and behaviours are shifting over time, and identifies areas where course correction may be needed. A set of risk culture metrics or indicators also act to help identify and anticipate emerging threats to a strong risk culture.

To help organisations navigate this challenge, we have identified some common design principles to think about when developing risk culture metrics or indicators as well as some common challenges we are seeing across the market.

Download the full report to learn more about: 

• The 5 design principles for risk culture metrics or indicators
• Common challenges we see with risk culture measurement