Behaviors of senior management and employees of organizations in the day-by-day activities are a direct consequence of risk culture of the organization. The embedding of corporate values and a sound risk culture envisage the fulfillment of a proper risk taking and contribute to add value to the organization.
A robust risk culture among others:
- impacts positively on the viability and sustainability of the company as it contributes to achieve the planned strategic objectives by a more timely identification and management of vulnerabilities and emerging risks;
- facilitates the achievement of stakeholders expectations, contributing to safeguard interests of different counterparts and investors, by consolidating the reputation of the company;
- facilitates the alignment between a sound management of risks and rewards systems with positive effects on the commitment of management and employees;
- boosts the efficiency of the organization contributing to strengthen the internal control system with a potential reduction of costs (e.g. costs related to control activities and operational losses) and improvement of operational flows.
Investing in risk culture represents a long standing benefit for the company and represents more and more frequently a core priority of the governance of the banks becoming, a fundamental component of governance effectiveness itself.
Chief Audit Executive