Risk Management Culture

This can be defined by the standards as the culture, processes and structures that are directed towards potential opportunities whilst managing advanced consequences. Key variables that will foster success in Supply Chain vulnerability, continuity management
and resilience include:

  1. Risk awareness among top management.
  2. Risk management as an integrated part of Supply Chain Management.
  3. Understanding by each employee of his/her role in risk awareness.
  4. Understanding that changes in business strategies change SC risk profiles and therefore risk awareness must be constantly updated.

Creating the desired risk culture
Cultures that are dysfunctionally risk taking/risk averse because of failure to adapt to changing risk profile of organization has been changed via:

  1. Consistent expression and modelling of new values by senior management.
  2. Changing underlying and belief via communication, education and involvement of employees in discussing the need for new ideas and behaviours.
  3. Embedding desired attitudes and behaviours in policies, procedures, rules, systems, employee communication, management style so that they become business as usual and are supported by necessary information resources and control.
  4. Using HRM mechanism to enforce the changes appraisal and reward.
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