Risk culture is the term used to describe the collective way that an organization thinks about, manages, and responds to risk. It is influenced by the organization's values, beliefs, norms, and practices, as well as the external environment and stakeholders. Risk culture affects how employees perceive, communicate, and act on risk issues, and how they balance risk and reward in their decision making. A strong risk culture is one that supports the organization's strategic objectives, fosters accountability and transparency, and promotes learning and improvement. A weak risk culture is one that undermines the organization's risk management framework, creates silos and conflicts, and exposes the organization to excessive or unnecessary risks. References:
* Shared Assessments CTPRP Study Guide, page 13, section 2.1.1
* GARP Best Practices Guidance for Third Party Risk, page 5, section 2.1
* Organizational culture | Definition, Benefits and Challenges