You may have heard me recently compare risk to gravity.
So it may amuse you that, from my own observation, Risk ‘communication’ seems to defy gravity.
Here’s what I mean: What goes up doesn’t necessarily come down.
In addition to its language, a culture relies on its ability and willingness to communicate.
For a bank to have an effective Risk culture, communication needs to start from the bottom and reach the top.
And also... It needs to come from the top and work its way down.
Far too often, I’ve witnessed the front lines – analysts who are dealing with and assessing risk on a daily basis – sending great data and insights up the chain…
…and then nothing.
Unfortunately, those at the top don’t have a message... strategy... or directive.
And thusly, those down the chain are left to just do what they know – or think they know what might be best – whether it’s on point or not.
Bottom line – your communication is a pretty accurate barometer as to the health of your culture.
And you’re exposing yourself to even more risk when your lines of communication aren’t on full duplex.
Don’t let Risk manage you.
With Risk being like gravity, the last thing you need is to be wearing an overcoat made out of cast iron.