Internal and external data — gained through observation, questions, communication and documentation — can help each firm rank and weight its culture risk by means of a scorecard. While a scorecard can enable an organization to gauge its culture risk and implement improvements and controls (before the culture turns toxic), it is just a tool. Every employee, regardless of stature, should understand his or her role with respect to culture risk — and, what’s more, those responsibilities should be evidenced by their interactions with one another and the outside world.
Risk should be owned and included within each firm’s the enterprise risk framework. Let’s now look at the key components of an effective culture risk framework... Read more