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Corporate Culture and Conduct Risk

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.

Please contact us for more information or to request a proposal regarding corporate culture and conduct risk.