Setting up risk culture and risk governance

Ask us a question

Good risk governance, set up according to the principles of the ‘3 lines model’, is the basis for well-functioning risk management. It is important that the governance fits with the existing organizational structure and optimally supports risk ownership. The risk culture is perhaps a less tangible aspect, although it does contribute significantly to the effectiveness of risk management. Good coordination with performance management is essential here.

Risk governance

When setting up your risk governance, we apply the following working method:

  1. We start with an inventory of the relevant legal requirements with regard to risk governance for your institution. These requirements serve as preconditions for the further design.
  2. Next, we make an inventory of the existing (risk) governance, including possible bottlenecks, by means of desk research and interviews.
  3. Based on this inventory and the preconditions, we discuss with you the possible alternatives for setting up more effective governance and resolving existing problems.
  4. Finally, we support you in documenting the chosen structure.

Risk culture

To determine and achieve the desired risk culture, we take the following steps:

  1. We start by determining the desired risk culture and the associated behavior. We do this in dialogue with the management or the board.
  2. Then, we work out the desired culture and behavior as concretely as possible in examples to use in practice. We discuss these examples with you and together we estimate how far the organization is removed from the desired situation. This estimate can then be tested.
  3. Based on an inventory of existing instruments (core values, performance management, etc.), we assess whether these instruments contribute to achieving the desired situation.
  4. The desired situation, the inventory of existing resources and the organization’s perception are confronted, and the differences are mapped out (gap analysis).
  5. The gap analysis leads to an improvement plan, which includes various instruments to achieve the desired situation. We discuss this plan with you and finalize it based on the choices made. Of course we can offer support in implementing the plan as well.