Risk Culture

The norms, attitudes, and behaviors related to risk awareness, risk-taking, and risk management within an organization. Risk culture influences how employees identify, understand, discuss, and act upon current and future risks. In RBPM, a positive risk culture is characterized by transparency, accountability, appropriate challenge, continuous learning, and balance between risk control and value creation. Risk culture is shaped by leadership behaviors, incentive structures, governance mechanisms, and communication practices, and serves as a critical enabler of effective risk-based performance management.