Risk management committees have a place in maintaining the focus. 6. Engagement and conversations are vital. Risks need to be talked about. This builds awareness and action. Developing a culture in which risks and risk-taking can be discussed, managed and accepted is a key leadership challenge.
While we are not wedded to explicit, whole of organisation, risk appetite statements, the conversations about risk tolerance for particular risks are crucial. It is important to send clear messages to an organisation about whether, why and which risks should be reduced or relaxed a little. Some are below the waterline and must be averted.