Webinar Q&A: How to easily measure your risk culture

You can find here the list of questions and answers to the topics that were raised during the live session of the webinar: How to easily measure your risk culture - Risk Culture Dashboard Demo.

Thank you all participants for raising the questions below. We would also like to thank Nick Broome and Mitchell Carratt for taking the time to answer the following questions. To watch the webinar recording, in case you haven't done it already, visit this page.

1. Have you had any discussions with regulators like APRA about the risk culture metrics they are expecting?

APRA (Australian Prudential Regulation Authority), along with other regulators, have not specified what metrics they expect to see for Risk Culture but encourage the industry to continue to develop and refine different approaches. 

2. Can Business Unit filters be applied to the dashboard?

The current version of the dashboard operates at the enterprise level. We expect to be able to provide BU filters as one of the future enhancements.

3. How was the overall risk score calculated? Was it the average of the individual scores?

Yes, it is a combination of the section scores. In the baseline dashboard, the sections are weighted the same however this could be adjusted in tailored dashboard and is an area we will review for future enhancements.

4. One of the metrics is "Registers" what does this refer to and how is it relevant, and how does it score a 5 for the current period?

An indication of positive culture or behaviours is where all of the relevant risk information is in one place so it can be linked and provide a holistic picture of risk. This metric attempt to measure this as the number of registers within ERM and whether these continue to be expanded. A high score (such as the 5 in the example) indicates that there are a number of registers in place and the company is still looking to expand the reach and connectivity of the risk framework.

5. Do you have any thought on adding in 'ancillary' measurements, such as completion of mandatory training?

Yes, we have considered and are in discussions with some clients about a tailored version of the dashboard including ancillary measures. We have not included these in the baseline dashboard as it would be very difficult to get consistency across entities to support benchmarking.

6. What is the cost of the whole ERM?

The annual cost is dependent on the number of licences you require. We have passed your details on to our Sales team who will be in contact to provide more details.

7. When discussing levels of maturity, you mentioned non-risk behaviours from non-risk systems. Is there functionality to accept metrics from other systems to feed in to the dashboard?

Non risk data can be incorporated into a tailored version of the dashboard.

8. You didn't mention the Risk Culture Score, is this simply an overall algorithm based on the below metrics or data sets?

Yes, it is a combination of the section scores.

9. How can risk culture surveys be incorporated into the approach?

Risk surveys can be incorporated into a tailored dashboard. Alternatively, risk surveys can be kept separate from the dashboard as a different perspective.

10. In the previous slide, what do you mean by "Risk Refreshes" and "Refreshed"? What is the distinction between the two in your definitions?

The metrics look at the number of refreshes that have taken place in the year as well as the number of refreshes as a percentage of total risks. A refresh for the dashboard purposes means that it has been changed in some way i.e. not just opened and closed again.

11. What constitutes a risk "refresh"?

A refresh for the dashboard purposes means that it has been changed in some way i.e. not just opened and closed again. It is not perfect as a minor wording change would be classified as a refresh, however, we will look to refine this in future enhancements.

12. How long will it take to develop a customised dashboard, a basic one to start with?

That is dependent on a number of factors including how many metrics you want to include, whether the data is already available and how quickly your team is able to make decisions. 

13. Is there a cost for the baseline Dashboard?

The baseline Risk Culture Dashboard is $2,500 Australian Dollars per year.

14. How much is the risk culture dash without any customisation off the shelf? Would benchmark be included in the $2500 per year?

The baseline Risk Culture Dashboard is $2,500 Australian Dollars per year for current Protecht.ERM clients. The benchmarks, when available, would be included in this price.

To learn more about this new Protecht.ERM feature, just book an online or a face to face meeting with our friendly team.