Module 2
Session 1 - Theory Session 2 - Theory Session 3 - Practical Session 4 - Practical
Introduction to the Course Feedback from Previous day Short Recap on Theory Feedback from Previous day
Module 4B: ISO 31010 Risk Assessment
Techniques
Module 1: ERM Principles, framework, Baseline, Issue Base RA Module 7: Monitoring and Review Practical: SWOT combined with Force
principles and protocols (ISO 31000) HAZOP (Project) (ISO31000) Filed Analysis
FMECA (Technical Equipment)
FTA / ETA (Event Management)
Module 2: Risk Culture, Aspect and Module 5: H&S Leadership in context of
Strategy ISO 45001, 14001, 9001
Modelling (IRM:UK Model) Behaviour modelling & Human Error
Practical: Attendee Presentations
Module 3: ISO 73 Risk Management 1. Internal and External Context
Vocabulary 2. Risk Culture and Improvement Plan
Concepts and Terminology 3. Hazard and Event Identification
Module 4A: Multilevel risk management 4. Hazard Lifecycle Map
Module 6: Bow Tie Analysis - Integration
process 5. Selection of Risk Assessment Techniques
with Activities and Critical Control
(ISO 45001) 6. System Effectiveness Course Examination
Monitoring regimes
Baseline Risk Assessment 7. BTA and Critical Control Exercise &
Issue / Significant Based Risk Assessment Feedback
Task / Activity Risk Assessment
Continuous Risk Assessment
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What fits in Where?
Risk attitude is “the chosen position adopted by an individual or group towards risk, influenced by risk perception”
Risk behaviour comprises external observable risk-related actions, including risk-based decision-making, risk processes, risk
communications etc.
Risk culture is “values, beliefs, knowledge and understanding about risk, shared by a group of people with a common purpose”.
Risk culture is the sum of multiple
interactions. At the lowest level, each Risk Culture A In
flu
en
individual’s personal predisposition to ce
Attitude s
risk contributes to their ethical stance, Organisational
how they behave and make decisions. Culture
Behaviours B In
Group behaviours and the underlying Shapes flu
en
organisational culture also influence risk Behaviour ce
s
culture. Personal Ethics
Ensuring that there is diversity in risk Personal C
dispositions around the table acts as an Predisposition Forms
antidote to groupthink to risk Culture
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Understanding Risk Culture
Every individual comes to an organisation with their own personal perception of risk.
People vary in all sorts of ways and this includes their predisposition towards risk.
Personality research identifies two specific traits that contribute to this:
Embedding right risk • The extent to which people are either spontaneous and challenge convention or
culture organised, systematic and compliant;
• The extent to which people may be cautious, pessimistic and anxious, or optimistic,
resilient and fearless.
How risk is viewed and
addressed by employees Increased measureable risk velocity - Ethic of Ethic of
time of impact reason obedience
(wisdom, (rule compliance,
Method of ‘measuring’ risk culture experience, spirit of the law
Multi-faceted prudence etc.)
etc.)
Risk integrated to
decision making Influential factors to risk culture
structure Individual’s ‘predisposition to risk’ Ethic of care
Personal / individual ethics that shape (empathy, concern,
respect etc.)
attitudes for risk decision making
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Risk Culture ABC Model
Protiviti, Risk and Business Consulting, “Risk culture - Resources for Practitioners”, 2012 The
Institute of Risk Management. Chapter 11
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Risk Culture Aspects Model Black in the diagram to greater impact on sociability
Red aspects to improvements in solidarity
Risk leadership: clarity of direction Well informed risk decisions
Decision making
Tone at the top
Dealing with bad news: how the Reward: appropriate risk taking
organisation responds and performance management
Risk Resources: the
Accountability: the clarity status, resources and
of accountability for empowerment of the
managing risk
Competency
risk function
Governance
Transparency: the Risk Skills: risk skills -
transparency and the embedding of risk
timeliness of risk management skills
information across operation
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Risk Culture Score Card (Refer to Workbook for all levels of evaluation)
Risk Culture Model
Risk Culture Scorecard
Question
BLUE GREEN YELLOW RED
Theme
Issue
Questions Expectations & Evaluation Comments
9-10 6-8 3-5 1-2
(1) Is there a distinct ' Tone at the Senior Management set clear expectations and strategic
Top' from senior management as to direction for risk management. Managers throughout the
the importance of risk management? organisation are clear on what is expected of them in terms of In addition to
If so what does it feel like? managing risks. 'green', executive Leadership
sponsor is very expectations are Leadership
Risk Leadership
(2) Is direction provided as to how Leaders role model risk management thinking and actively visible and leaders clearly expressed expectations on It is not possible to
risk management can contribute to discuss tolerance to risk issues. Leaders demonstrate personal demonstrate their and consistently risk management describe a 'Tone at
the business objectives? conviction. commitment on a communicated. are defined but the Top' or
1 sustained basis, Direction is set and inconsistently leadership
(3) Is senior commitment consistent, Leaders ensure the focus of risk management efforts is shown personal leaders create a communicated and expectations on
visible and sustained over time? focused on supporting the organisation in delivering its conviction in how 'Tone at the Top' understood. Staff how risks are
corporate objectives. they communicate through are not clear on managed
(4) Who is the executive sponsor of and ask questions reinforcement and overall direction.
risk management? The messages are consistently delivered and senior regarding business challenge.
management and visible on the issue of managing risk. risks.
(5) What tangible actions are visible There is a clear message and sense of direction which is
from the executive sponsor? actively reinforced.
Senior management actively encourages management In addition to
The organisation
information related to risks to travel quickly across the 'green', leaders see The communication
does not
Responding to Bad News
(1) Do leaders encourage risk organisation. their ability to Leaders encourage of 'Bad News' is
encourage the
information and 'Bad News' to be extract learning the timely sporadic. Attempts
communication of
proactive and rapidly communicated Transparency on risk information (positive or negative) is from good and poor communication of are made to
information about
up the organisation? rewarded and role modelled. risk management material risk encourage early
potential negative
TONE AT THE TOP
judgements as a information. They communication of
events. Managers
2 (2) Are whistle-blowers and those Leaders refer to company values when responding to key corporate challenge risk information. It
are concerns about
raising concerns supported and challenges. competitive managers to is recognised that
communicating
celebrated? advantage. This is divulge 'Bad News' this is important,
'Bad News' to
Openness and honesty are recognised as key to effective risk seen as part of the early to ensure it is but processes are
leaders. Stories
(3) How are those transmitting the communication. organisation's acted upon in a still to be
exist of 'the
message treated afterwards? knowledge timely manner. formalised and
messenger having
Those providing timely risk insights are rewarded and management embedded.
been shot'.
encouraged. process.
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Types of Decisions & Risk Culture
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