Risk Management continues to become a larger component of total organizational resilience methodologies. And implementing an effective risk management culture in any organization ultimately depends on support from top management, consistently communicated actions properly funded by top management and an ongoing commitment by top management to be involved in that process to review and — where needed — improve that communication methodology on a regular basis.
However, at the same time, having top management walk the walk of promoting an effective risk management culture in the organization involves top management’s support in many complex activities, policies and procedures.
To that point, our staff would like to bring our reader’s attention to an article written by Ariane Chapelle, in which a strong argument is made for promoting the fact that incentive management is one of the most critical issues involved in the implementation by top management of an effective risk management culture.
As Chapelle states, “….this article combines findings of some of the best research in incentive management, corporate culture and behavioral psychology. It proposes the MESAR model, an original approach articulated around five actions to manage incentives: Motivate, Enable, Support, Assess and Reinforce.”
For those readers not familiar with the MESAR model, Chapelle does a fine job showing how while addressing requirement of strong incentive management, this approach also addresses the main drivers of all human behavior ….i.e. the sense of good, the sense of recognition, and the sense of belonging.
Our staff recommends that you:
2. consider adding it to the reading resource library of the risk management team members in your organization, and
3. review and execute a free subscription to The Risk Universe magazine, which is a digital, monthly, e-magazine and real-time website that seeks to illuminate the world of operational risk management.
Do you have a perspective on this subject matter which you would like to share with our readers?