Culture

Definition:

With an increasing percentage of professional employees working remotely full or part-time, organizations are challenged to maintain, enhance, or control their organizational culture. This risk examines whether organizations understand, monitor, and manage the tone, incentives, and actions that drive the desired behavior.

Analysis:

There is strong alignment across all key risk management players regarding the relevance of Culture to organizational success. However, a gap exists between the number of board members who have high personal knowledge of this risk and senior executives who do. Similarly, fewer board members perceive their organizations as having a high capability to manage this risk, which is increasingly important to organizations as they emerge from the global pandemic.

KNOWLEDGE AND CAPABILITY

Percentage who gave a rating of 6 or 7 on a scale of 1 to 7

RISK STAGE

Remained in Develop

RISK RELEVANCE

Percentage who gave a rating of 6 or 7 on a scale of 1 to 7

– Culture

Quotes:

“We all ‘live’ culture, but understanding how to manage it and change it is a different beast altogether.” –CAE, Finance

“Our worry is about losing the culture with the new people. They never really got to experience [culture] because they go right from being hired to working from home.” –C-suite, Real Estate

70%

CAE Board C-suite