Actively managing risk culture in energy firms: part one

How energy firms can define, assess, benchmark and manage risk culture

Creating a risk culture framework

Interest in the risk culture of organisations has increased dramatically in recent years. During that time, research, studies and broad discussions on the importance of risk culture have proliferated across the world.

Risk culture is often ‘the elephant in the room' behind many risk management failures, such as those shown in figure 1. To enhance firms' level of risk awareness, boards and senior management should periodically assess the risk-taking culture of their organisation in order to under