10.8 Assessing, monitoring and controlling risk culture

Question 1

Give three measurement techniques for culture.

Answer 1

Employee surveys
Focus groups
Interviewing staff
Internal audits
Analysis of information like staff turnover

Question 2

Name a tool for the control of risk culture.

Answer 2

Simons’ levers of controls (Simons 1995)

Question 3

What are the 4 levers in Simons’ levers of control?

Answer 3

1 Belief systems
2 Boundary systems
3 Diagnostic systems
4 Interactive systems

Question 4

What are “belief” systems in Simons’ levers of controls?

Answer 4

Tone and action from the top
Organisational values
Codes of conduct

Question 5

What are “boundary” systems in Simons’ levers of controls?

Answer 5

Risk appetite
Policies and procedures
Mandates and limits of authority

Question 6

What are “diagnostic” systems in Simons’ levers of controls?

Answer 6

Employee performance evaluations
Remuneration arrangements
Disciplinary and greivance procedures

Question 7

What are “interactive” systems in Simons’ levers of controls?

Answer 7

Training and development
Risk communication and escalation
Lessons learned