Short on time? Go to the end to find out what “rewarding risk” is all about.
I’m blogging on accountability at the top for risk. Last week I led off with the story of Val King and her experience of risk appetite being an avenue to increase accountability for risk at all levels of the organisation.
Have you asked yourself why people don’t take accountability for the more formal management of risk our risk frameworks demand? In particular, senior leaders?
In my experience, a lack of accountability is not a conscious choice by a leader. It is a circumstance of something else. For example:
- Buy-in – They have not been “sold” on why they should pay attention to and engage with the requirements of the framework.
- Engagement – Despite hearing the why, they won’t buy-in because they feel the requirements were thrust upon them. “Another bloody thing to do!”
- Clarity – A lack of understanding of what is practically required of them.
- Resources – They don’t have the headspace. They are so busy keeping balls in the air, they are tackling the now rather than what might be.
Or it could be that they have legitimately engaged with the requirements of the risk framework and been left underwhelmed. They have not felt sufficient reward for their efforts. If you saw effort and then the lack of accountability, you will need to look at the “risk vs reward” equation for leaders and increase the reward. More on that to come. ☺