Having proportionate Risk Management policies and processes in place is a key milestone towards being a genuinely sustainable business. However, unless the culture of the business fully embraces both the letter and the spirit of those policies and processes, then a genuinely sustainable culture will never be realised.
To further complicate matters, the very nature of business – and therefore the types of risk inherent in that business - is changing rapidly. Whereas traditionally, for example, the impact of operational failures could be contained internally with minimal reputational or external stakeholder impact, in today's connected world, such events can become instant headline news and can lead to rapid and sustained contagion, with huge reputational impact.
Businesses are required, therefore, to demonstrate a level of speed, agility and clarity of response that has not been required before. This in turn requires the business to exhibit a more mature governance and decision making structure.