APRA Insights on Risk Culture

APRA Insights on Risk Culture

07 Mar 11:00 by 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.