APRA Insights on Risk Culture

07 March 2017 Sara Lee

Moving in the Right Direction Graphic

SKL Consultants attended the Insight Session at the Actuaries Institute on Risk Culture today. The Head of Governance, Culture & Remuneration at APRA, Fahmi Hosain discussed the following key items.

What’s the risk culture? - risk culture can be thought of as the impact of organisational culture on risk management.

Key observations from APRA:

  • A great deal of activity taking place in this subject
  • Clarity of purpose & values seen as critical to balancing competing tensions
  • Senior leadership (and Board) seen as key driver of culture
  • Often, CRO is driving culture-related work (for now)
  • Recognition that greater use of HR resources, insight and data would be beneficial
  • Risk culture assessments primarily focused on business units and below

APRA focuses on the 3 areas in the risk assessment: Culture, Remuneration, & Governance.