This is an interesting article in the FT from the summer. In a global organization, how messages are interpreted based on national cultures. With respect to risk (not just in banking), cultural interpretation can be along a lengthy spectrum. While broad internal (and constant)communication goes a long way to overcome this, contextual factors play a large part.
The growth in enterprise risk management helps organizations put their risk strategy and appetite into context and builds the necessary structures, controls and governance around risk. But in order to overcome cultural interpretations of risk tolerance, the best way to create a common risk culture in a global organization (whether it’s a hotel chain or a banking conglomerate) is to have one, single strategic point of focus that resonates with everyone. For InterContinental Hotels, in this article, it may be to “champion our brands”. For any bank, it should be “to protect our reputation”.
Keith W. Waitt
President & CEO
Consultancy Matters LLC