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.