The shared attitudes and behaviours towards risk across an organisation. Incentives and tone from senior management shape it.
Where you will meet it
Risk culture comes up in 5 learning outcome notes across the FRM syllabus.
A few of them:
The Governance of Risk Management FRM Part I · Foundations of risk management
“All of this is supported by a risk culture set by tone at the top.”
Stress Testing FRM Part I · Valuation and risk models
“Programmes should have clear, documented objectives and be an integral part of governance and risk culture, with board and senior management involvement.”
Risk Governance FRM Part II · Operational risk and resilience
“A robust risk culture needs tone from the top, accountability, incentives aligned with the statement, training and safe channels to speak up.”
Enterprise Risk Management and Future Trends FRM Part I · Foundations of risk management
“Risk culture is the set of norms, attitudes and behaviours in a firm that shape how people identify, understand, discuss and act on risk.”
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