This article describes what should be understood by 'risk culture' and what this involves. Inculcating such a culture into a company is often a challenge. However, it is a challenge that is crucial for successful risk management (Enterprise Risk Management - ERM).
Suprisingly, people manage risk and set up an ERM system without having either a risk culture or a precise definition of their risk heightens appetite or risk tolerance. The financial crisis, and the fragile state of the economy, only emphasise the need to embed this culture throughout the whole company.
François MasquelierHead of Corporate Finance and Treasury, RTL Group, and Honorary Chairman of the European Association of Corporate Treasurers