Corporate culture and conduct risk is the hidden attitude, behaviours and decision making of employees and managers which undermine the shared values, standards and beliefs of the organisation. A high exposure to these risks can result in significant financial and reputational damage to an organisation.
Effective Governance has developed a first of its kind tool designed to unearth risky behaviour patterns that are hidden from the eyes of management and the board. In a complete shift away from the traditional human resources tactics including culture programs and employee engagement surveys, we critically analyse the six core components of culture risk including:
- Ethical or appropriate behaviour
- Quality of decision making
- Role competence
- Capability or talent
- Recruitment or staffing levels
- Morale or staff engagement
The Corporate Culture and Conduct Risk Diagnostic is a four-stage process delivered over approximately two months which includes:
- Introduction to Corporate Culture and Conduct Risk – Effective Governance will introduce the components and process of the assessment with a 1.5-hour presentation to the board and 2-hour presentation to the leadership team
- Corporate Culture and Conduct Risk Review – This part of the process begins with a survey sent to board, management and employees where only relevant questions are asked of each group. The responses from the survey allow us to develop a line of questioning for interviews with various survey participants. While the survey is being conducted a review of the strategic risk register is also undertaken.
- Recommendations Report – A report is created by our panel of experts that collates the responses from the previous stage and provides recommendations from a governance, risk, human resources and organisational psychology perspective.
- Board Presentation – The information gathered and analysis conducted from the previous steps are then presented back to the board in a 2-hour presentation.