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(RISK-3175) Actions for Improving Risk Management Culture

Level: Basic
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA

Abstract: Risk assessments can be contentious. Results can challenge strongly held organizational assumptions, impact personal interests such as sales targets, or point out poor decisions and control. Even with excellent historic data and rigorous quantitative assessment, risk assessments are easily questioned or dismissed since the events have not yet occurred. Nevertheless, a robust enterprise risk management program is a critical component of effective project and organizational management, with research indicating a link between proactive risk management and better organizational results. However organizations can be held back in effectively implementing and executing risk management activities by the maturity of their risk management culture (for definition see under “Background,” below).

The aim of this paper was to identify actions that organizations can take to improve their risk culture and to facilitate the establishment of a robust risk management program.

This research was completed by conducting a literature review to identify factors that organizations can take to positively influence their risk culture. To augment the findings of the literature review, a questionnaire was provided to organizational and risk leaders to identify what factors they see as important and what their organizations are doing (or not doing) to improve their risk culture.