A new Australian study reinforces an established truth – risk management needs to start at the top of any major organization
The study of top companies on the Australian Stock Exchange (ASX500) found that governance and risk management frameworks are not integrated in many companies and, while governance frameworks are mature, risk management remains at the operational level.
The study concluded that people in the board room look at risk management as protecting the organization’s reputation, and Directors liability, while the broader impact of risk management is expected to somehow cascade down through the operational levels.
Sadly, the same approach often applies to crisis management – an expectation that this is not a place for direct top management involvement but needs to be handled “nearer the front line”
My new research on executive attitudes to crisis management will be published soon, but in the meantime, what are the most effective ways of getting top management to take a leadership role in risk and crisis management and crisis preparedness??