Quais são os benefícios de promover uma forte cultura de risco operacional em toda a organização?

How much do your employees embrace risk management processes? In many organizations, risk is treated as an afterthought. Some organizations can't afford that. For example, health organizations must treat risks as omnipresent. They can't afford to turn a blind eye to risks.

Agree with 100% no compromise with rules and regulations as recommended by central bank and internal risk & compliance teams.

Operational risk culture encompasses the values, beliefs, and behaviours shaping how operational risk is understood, evaluated, and addressed within an organisation. It mirrors leadership commitment, communication channels, risk awareness, training initiatives, incentives, and accountability frameworks, as well as learning mechanisms. A robust operational risk culture fosters transparency, openness, collaboration, and accountability regarding operational risk matters and resolutions. It empowers individuals to take ownership, proactively address issues, and contribute to continuous improvement, thereby fortifying the organisation's resilience and effectiveness in managing operational risks.

Enhanced Risk Awareness: Employees at all levels become more aware of potential risks and their impact on the organization. Proactive Risk Management: A strong culture encourages proactive identification and management of risks before they escalate. Improved Compliance: Fosters adherence to policies and regulatory requirements, reducing the likelihood of violations and penalties. Increased Resilience: Enhances the organization’s ability to withstand and recover from disruptions and operational challenges. Better Decision-Making: Informs more informed and balanced decision-making by integrating risk considerations into daily operations. Employee Engagement: Builds a shared responsibility for risk management

It instills confidence in stakeholders, fosters regulatory compliance, and ultimately contributes to long-term sustainability. For instance, a financial institution with a strong operational risk culture might navigate market fluctuations more effectively, ensuring financial stability.

Operational Risk culture is too often aligned to regulations, rules that need to be met. In the banking sense, that probably stems from the financial crisis. However, failed processes are a norm but too frequent, too large a financial impact beyond the risk appetite (if there is one defined) can be detrimental. Operational Risk culture if done right helps the people, process and systems to operate a successful business as it prevents or detect opportunities that may come off the rails if underlying risk are not managed. Likewise, it enable business to apply capital to responsible growth, learn from mistakes and continue to operate a profitable enterprise without material unknowns impact their profitability.

Operational risk culture refers to the collective values, behaviors, and attitudes within an organization that influence how employees perceive and manage operational risks

Operational risk culture is pivotal as it profoundly influences operational risk management's quality and efficacy. A robust operational risk culture enables proactive and comprehensive risk identification and mitigation, thereby minimising operational losses and incidents. It fosters operational performance and efficiency through streamlined processes, enhanced systems, and empowered personnel. Moreover, it bolsters operational resilience and adaptability, enabling swift responses to evolving environments, disruptions, and opportunities. A strong operational risk culture is indispensable for sustaining organisational success and resilience in dynamic landscapes.

To remain in the market and relevant competitive, we need to ensure consistency in our approach especially in terms of delivery of good and services, in the end, what matters ,we need to create value for customers for thier time faith and ensure win win for both..risk can derail company trajectory if not managed well ...

Fostering a robust operational risk culture demands a holistic approach involving all levels. Establish a clear vision aligned with organisational goals, communicate expectations, and provide resources. Encourage positive behaviours, monitor effectiveness, and learn from experiences. Continuous improvement is key to enhancing operational risk management capabilities and outcomes.

How do you foster a strong operational risk culture across the organization? a) Document processes & procedures. One of the issues with operational risk is lack of standardisation in way things are done. Writing down process steps ensure that you can identify high risk points & determine the best mitigants. b) Discussion around operational risk shouldn't be viewed as a 'leadership responsibility" but rather an expectation across all levels of the organisation; encouraging ideas and suggestions at all levels of the business. c) Maintain an operational risk event log, conduct root cause analysis, using them to drive improvements. d) Demonstrate its' importance by investing in tools and technology that automate processes

An important aspect of building a resilient operational risk management culture is “Walk the talk”. In great organizations the corporate leaders lead by example and renforce the importance of risk management to business sustainability and success. The corporate culture is usually driven by the level of clarity on the acceptable cost for success. It start with mature processes to assess the risk across the business as an inherent practice. When employees see risk management as part of building successful business rather than a layer of bureaucracy, then you achieved a positive risk culture.

Organisations should have strong whistleblowing policies. Employees should be able to raise their concerns against the wrongdoings of Mangers, Senior management, Board, Colleagues, Suppliers and other participants without the fear of repercussions.

Fostering a strong operational risk culture empowers employees to identify & mitigate potential issues, leading to: 1.Reduced losses & disruptions:Proactive risk management minimizes operational errors, fraud, & compliance breaches. 2.Enhanced decision-making:Employees consider risk implications, leading to more informed choices. 3.Improved efficiency & performance:Streamlined processes & empowered individuals drive better results. 4.Stronger reputation:Mitigating risks protects brand image & fosters stakeholder trust. Investing in a risk-aware culture yields significant benefits for organizations of all sizes.

Drawbacks and how to deal with them: Promoting a strong operational risk culture offers various benefits, including improved risk management and operational performance. But, potential drawbacks can arise: resistance to change, compliance burdens, and fear of retaliation. These can be addressed by providing clear reasons for change, offering training and support, implementing robust whistleblowing policies, and prioritizing resource allocation. Also, striking a balance between risk mitigation and strategic objectives, avoid cultural stagnation, and promote a culture of continuous improvement. In summary, while establishing an operational risk culture has advantages, addressing potential drawbacks requires a proactive and balanced approach.