ACCA Forum June 2013

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Organisational culture, governance, risk & performance following the global financial crisis. ACCA ACCOUNTANTS FOR BUSINESS GLOBAL FORUM Culture, risk & performance 14 June 2013

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Group discussion 1.  2.  3.  4.  5.  6.  7.  8.

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Does your organisation have the culture you want? How can you tell? Does your sector have a culture problem? How do you know? What is culture? Can you describe it clearly and meaningfully? Do you want to promote culture change within your business? How is the issue of corporate culture addressed in your business? Does your organisation work across multiple cultures? Do you understand the impact of this? What do you believe are the practical issues that need to be addressed to improve culture? Does the finance function have a specific responsibility to play in helping drive an improved culture, particularly in regard to its role as the steward of the organisation? Is the CFO best placed to drive through corporate culture change, or does the responsibility lie elsewhere?

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What do we really know about culture? •  Our project •  A survey of some of the key issues •  General discussion and debate on culture

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Here is the problem: First, virtually no one clearly deﬁnes what they mean by ‘culture’, and when they do they usually get it wrong. Second, virtually no one has read the original research that shows why culture – when clearly deﬁned – is so important, how it is formed, and how it changes. John Kotter in Forbes, 2012 © 2013 Paradigm Risk Limited. All rights reserved

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How we portray risk management

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The myth •  AS/NZS 4360 •  ISO 31000

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. . . the reality

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Schein’s view interpreted by Hofstede et al

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Insights from changes at NASA

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What about psychometric approaches?

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How our brains work matters

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•  We live in a shrinking, overpopulated, networked and thus interconnected world •  Risk transmission and amplification can be unavoidable

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The project : next steps •  •  •  •

Review the relevant literatures Interview people dealing with organisational culture Formulate some positions / hypotheses Hold a series of roundtables –  By sector in London –  In international locations •  Prepare reports •  Publish and launch •  Then what . . . . ?

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www.paradigmrisk.com

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